Thailand Publishes CBDC Survey Results, Pilot To Begin In 2022

The Bank of Thailand has released the results of a retail Central Bank Digital Currency (CBDC) survey and public survey that the central bank said will guide the development of CBDC pilot testing in the country. The Bank of Thailand stressed that CBDCs for the general public should not negatively impact monetary policy transmission, financial institutions and overall financial stability.

To prevent the issuance of a CBDC from posing risks to financial stability, the bank has disclosed three main principles: CBDCs must be cash and interest-free, intermediaries such as financial institutions will distribute the CBDC to the general public, and conditions and limits must be set for converting CBDCs.

The pilot launch of the retail CBDC will be in two parts. The first part will assess the use of CBDCs for monetary transactions such as payments. This phase is expected to begin in the second quarter of 2022. The second part is innovative, which will explore the use cases of CBDC with the participation of the private sector and technology developers.

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