The Bank of Thailand (BOT), has announced that the testing phase of its central bank digital currency, CBDC (central bank digital currency) will be delayed until late 2022.
Thailand Reschedules CBDC Test
Reuters reported the delay and noted that Thailand will use its national digital currency to pay for cash.
Although the central bank didn’t give any explanation for the delay it stated that they still plan to use the pilot project in order to assess the use of a CDBC as a complement to cash transactions with a limited skill.
Pilot phase: Financial institutions and approximately 10,000 users will test the digital currency online and offline for deposits, withdrawals, fund transfers, and other transactions.
Kasidit Tansanguan, deputy director of BOT, commented on the developments. He said that it would be slowing down to achieve efficiency after consulting with relevant partners.
He said that Thailand can still make a gradual move in the retail CBDC to improve efficiency and prudence, as it has a problem with funds transfers or payments like other countries.
CBDC reduces cash dependence
The world is moving digitally, and especially COVID, so central banks around the globe are trying to decrease their dependence on cash.
While some countries have begun using CBDC, others are still testing to determine how it works. Central banks have stated that CBDC can only be used to complement cash, and not replace it.
Some countries, such as Nigeria and the Bahamas, have already started to use CBDC. Others, like China and Ghana are currently undergoing a pilot implementation program.
Not Crypto, Banks Support CBDC
Although central banks are accepting the idea of launching an electronic currency national, they still have reservations about cryptocurrencies.
Tansanguan stated that BOT plans to use its CBDC for financial cost reduction and not to compete with stablecoins or crypto assets.
The Bank of Thailand advised local banks and financial institutions not to trade digital assets earlier this month. It also stated that it doesn’t support the use of cryptocurrency as a means of exchanging goods or services.
According to another report, Indonesia’s central banking announced plans to establish a CBDC in order to fight cryptocurrencies such as Bitcoin and Ethereum.
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