The Bank of Thailand (BoT) has expanded testing of a central bank digital currency (CBDC) among large businesses, the Nation Thailand has learned, citing BoT Assistant Governor Vachira Arromdee.
It is expected the BOT will start using CBDC for transactions with the Hong Kong Monetary Authority in September this year.
"The central bank is also thinking about expanding use of the cryptocurrency to the public, but a comprehensive study must be completed before taking such action," Arromdee added.
The BoT Assistant Governor also pointed out CBDc still may have negative impacts on commercial banks as it removes the need for a middleman in financial transactions.
However, CBDCs could also reduce the cost of financial transactions, Arromdee added.
In June, Thailand's central bank announced it would develop a prototype of the payment system for businesses using CBDC.
Developed by the BOT, CBDC will be integrated with the procurement and financial management systems of the Siam Cement Public Company Limited and its suppliers developed by Digital Ventures Company Limited.
According to an official announcement, the BOT recognizes and supports "the important roles of financial innovation and technology in enhancing the competitiveness and readiness of the business sector entering the digital age."