Thailand's central bank, the Bank of Thailand (BOT), has announced public consultation about its plans to create its own retail CBDC. According to a published report, the watchdog might launch the digital currency in the next three to five years, and the first tests are scheduled for Q2, 2022.
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The BOT notes the CBDC could help "safeguard the stability" of the Thai financial and monetary system in the new financial landscape.
"A retail CBDC could serve as a trusted and safe means of payment accessible by Thai households and business alike, existing alongside cash and other payment instruments," the bank said.
The BOT also said that the issuance of a CBDC would also "pose risks." According to Thailand's central bank, a CBDC might potentially lead to disintermediation of financial intermediaries, exacerbation of bank runs especially in times of financial crises, and maintenance of high security standards and public trust in the CBDC system.
However, the BOT believes these issues can be "mitigated" through the design of the digital currency. Earlier in March, the BOT announced it will revel plans for stablecoin regulation later this year.
According to Siritida Panomwon Na Ayudhya, Assistant Governor of Payment Systems Policy and Financial Technology at the BOT, the bank wants to regulate foreign currency(and other assets)-backed stablecoins "that are not illegal," which means cryptocurrencies like bitcoin (EXANTE: Bitcoin) or ether (ETH) do not fall under the upcoming regulations.
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