The Central Bank of Thailand (BOT) on Friday announced that it is planning to test central bank digital currency (CBDC) by the end of 2022 or by mid of 2023.
BOT selects 10k users to test CBDC
BOT noted that central banks across the globe are focused on working on the development of the Retail CBDC. It believes that central bank backed digital currency can be the foundation of the future financial and banking system.
According to Bloomberg, BOT is yet to issue a plan to release retail CBDC. It mentioned that the testing phase is a part of a study that will help them to evaluate its suitability in regard to technology and design. The test will be conducted on a narrow scale with some selected participants.
CBDC will be used as the alternative payment option in conducting cash like transactions. The release mentions that around 10,000 retail users have been selected by the BOT along with three companies. Bank of Ayudhya, Siam Commercial Bank and 2C2P have been selected by the Thai central Bank.
A retail CBDC can be defined as the digital form of money or cash released by a Central bank. It has a major use case as it can be sent and received both offline and online. Meanwhile, BOT has been against the use of digital assets. Bank has cleared its stand over using Bitcoin and Ethereum as payment for services over associated risks.
Adoption of Digital currency on a rise?
The popularity of digital currencies is on the rise and its global acceptance is facilitating this movement. A report states that around 87 countries are considering issuing a CBDC. However, the Bahamas and Nigeria have already launched CBDC for the people.
Forbes reported that Countries like Russia, Malaysia, South Korea and Saudi Arabia are also in the pilot phase of developing CBDC. However, India, Brazil, and Australia have some concrete plans to launch the digital currency.