The Capital
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The Capital

Bank of Thailand Moves to a New Stage of Testing State Cryptocurrency

Deputy Governor of the Bank of Thailand, Vachira Arromdee, said that the bank has moved to a new phase of testing the state digital currency.

According to Arromdi, earlier the Central Bank of Thailand (BoT) began to test digital currency with large financial institutions, and in September plans to test it together with the Hong Kong Monetary Authority (HKMA). At this stage, the Central Bank of Thailand is testing stablecoin with small firms.

BoT expects that its digital currency will be able to be used not only by government agencies or large financial companies, but also by ordinary people. However, before the large-scale launch of the national cryptocurrency, it is necessary to conduct its comprehensive analysis and weigh the pros and cons.

Arromdi still doubts the advisability of using digital baht and suggests that this could adversely affect the activities of commercial banks, as intermediaries will no longer be necessary for financial transactions.

Digital currency, on the other hand, will reduce transaction costs. At the same time, Arromdi cited the example of the digital yuan from the People’s Bank of China (NBK), which is being tested in various industries, and this did not affect the country’s financial system.

In June 2020, BoT officially launched a pilot project to develop a new payment system for settlements between financial institutions using state-owned cryptocurrencies, and last year the Central Bank began testing the blockchain for international transfers with the oil company PTTEP.

Author: Marko Vidrih

Featured image credit: Unsplash

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Marko Vidrih

Marko Vidrih

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Most writers waste tremendous words to say nothing. I’m not one of them.