The Future of Thai Finance
Central Bank Digital Currency (CBDC) is a digital currency issued by a country’s central bank. In Thailand, CBDC is comparable to the fiat money issued by the Bank of Thailand (BOT) which can serve as a medium of exchange, store of value, and unit of account, but in a “digital” form.
What are the benefits? Why should they be studied and developed?
According to the survey conducted by the Bank for International Settlements (BIS) in 2021, central banks’ interest in Retail CBDC has grown over recent years. While central banks in emerging market economies (EMs) are more interested in exploring the potential use of Retail CBDC to replace or reduce cash usage, increase the efficiency and safety of domestic payment systems, and promote the access to digital finance services, central banks in advanced economies (AEs) are interested in using Retail CBDC as an alternative payment to enhance the safety, resiliency, and availability of payment systems.
Thailand’s progress and development of CBDC
The BOT has been among the first central banks to recognize the importance of digitization trends, which will revolutionize the financial infrastructure, and has conducted research on financial innovations by utilizing technology to enhance the country’s infrastructure capacities. One of the most important projects was “Project Inthanon ” in 2018 which aimed to develop the country’s infrastructure to accommodate the use of CBDC.
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