The Bank of Thailand’s Digital Currency Steps Into the Third Phase of Plan to be Extended to Large Enterprises

The Thai government has always been open to cryptocurrencies, and the central bank digital currency (CBDC) issued by the country’s central bank has entered the third stage of development. Assistant governor Vachira Arromdee said that he intends to introduce CBDC into the business of large enterprises Within the category. At the same time, in September this year, it will cooperate with the Hong Kong Monetary Authority to use CBDC in transactions.

Arromdee was interviewed by local media “The Nation Thailand” a few days ago and mentioned that the Thai central bank and some large enterprises are already using the central bank’s digital currency in financial transactions. She said that the central bank is considering expanding the cryptocurrency to the public level, and that it will only implement relevant policies if more research is completed. She explained that cryptocurrencies may have a negative impact on commercial banks, so she removed the role of commercial banks as intermediaries in financial transactions.

However, Arromdee pointed out that CBDC can reduce the cost of financial transactions, citing China’s central bank digital currency, which has not caused any impact on its financial system so far. However, when CBDC is promoted to the public, electronic wallets will be a big problem, so the Thai central bank needs to carefully consider its advantages and disadvantages, including whether it will affect the stability of the financial system. As for Thailand’s CBDC, the country’s international reserves and other tangible assets support its value, and it is a stable currency like the CBDC that other countries are studying.

Currently, many central banks around the world are studying the future development of CBDC, including the US Federal Reserve, the Bank of England, the Bank of Japan, and the People’s Bank of China. In particular, the COVID-19 epidemic affects people’s daily lives and reduces direct exposure to the market. The demand for CBDC is gradually increasing. However, many central banks are also very concerned about the impact of CBDC and the financial system, and private companies such as Facebook launching their own cryptocurrencies are also places where central banks of many countries have indicated that they need to pay attention.