The central bank of Thailand is in the third stage of developing its own digital currency. This was announced by the bank itself, as reported by The Nation Thailand.
The central bank is already using digital currency for financial operations with some big companies and the currency authority of Hongkong. The bank also plans to extend the use of cryptocurrency for the public, but before that the method for this must the thoughtfully examined, representatives of the institution noted.
Furthermore, the introduction of digital currency can have a negative impact on commercial banks by eliminating the middleman in financial operations. Central bank digital currency (CBDC) will also decrease the transaction fees.
CBDCs are cryptocurrencies issued by central banks. They however have a lot more in common with fiat money than with Bitcoin.
The digital currency of Thailand, unlike some other CBDCs that are being planned, will be secured by tangible assets, such as the international reserve of Thailand. In this way, it will represent more a stablecoin, pegged to a basket of currencies and other assets.
As for the wide use of CBDC through digital baskets, the central bank of Thailand considers this move risky for now. The institution wants to examine all possible challenges and opportunities that can influence the financial stability of the country.
At the same time, the private companies in Thailand are ready to embrace the digital assets.
The chairman of the consumer Krungsri group Takor Piyapan supports the wide use of CBDC, because, according to him, this will stimulate mobile banking and reduce the use of paper money.
