The Bank of Thailand has set an agenda for the central bank’s digital currency with an initial testing protocol scheduled to begin in the second quarter of 2022.
The central bank of Thailand made this known in a press release issued on Friday and asked for feedback on Thailand’s CBDC plan map.
To launch the CBDC crypto issuance plan, the central bank of Thailand has published their preliminary report detailing the CBDC issuance and its functions. However, the Bank of Thailand (BoT) argues that the success of stablecoin could pose risks to the current financial system.
For now, the BoT prohibits any other entity from issuing bhat currency-backed stablecoin. According to a Bank of Thailand report, the central bank will embark on CBDC expansion efforts with stakeholders and conduct an analysis of past costs and opportunities available to prevent the CBDC cryptocurrency from threatening the current financial system.
Therefore, the central bank is planning to limit withdrawals to avoid a 'bank run' during emergency times.
Vachira Arromdee, assistant governor of the financial markets operations group at the BoT, said that the central bank sees the CBDC as a tool to provide greater access to financial services in the country. He added that the CBDC project can be implemented in the next three to five years.
