Thai central bank to test retail digital currency this year


FE Team | Published: August 05, 2022 19:06:49 | Updated: August 06, 2022 19:10:52


Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva

Thailand's central bank said on Friday it expected to test its retail digital currency from late this year to the middle of 2023, as an alternative payment option.

During the testing, the retail central bank digital currency (CBDC) will be used in conducting cash-like transactions, like paying for goods and services, within limited areas and among about 10,000 retail users, the Bank of Thailand (BOT) said in a statement, reports Reuters. 

The BOT will assess the benefits and risks from the pilot project to formulate related policies and improve designs, it said.

At present, the BOT has no plans to formally issue its retail CBDC, it said.

A retail CBDC is a digital form of money issued by a central bank comparable to physical banknotes. It can be used in financial transactions both online and offline.

The BOT, however, has said it does not support use of digital assets, such as bitcoin and ether, as payment for goods and services due to associated risks.

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