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Thai authorities are apparently not hurrying to implement a central bank digital currency aimed at consumers (CBDC). The Governor of the Bank of Thailand explained that Thailand has a variety of alternative payment alternatives.
The Need to roll out a CBDC is not That High
Thailand is one of the countries that has expressed interest in establishing a CBDC. The central bank of the country has stated that it will evaluate how the financial product interacts with local firms in 2020. Furthermore, Assistant Governor Vachira Arromdee of the Bank of Thailand stated that the institution intends to make the CBDC available to the general public. The authorities announced their desire to utilize the national digital currency as an alternative to cash at the end of last year. The goal was to pass various experiments, which were rescheduled for the end of 2022. According to a recent local article, Thailand's central bank governor, Sethaput Suthiwartnarueput, is pleased with the current retail banking network. "The necessity to roll out a CBDC is not that high," he asserted. The bank's plans to conduct trials on the financial product in Q4 2022, according to the official. The project will be backed by financial institutions and private individuals who will make withdrawals, deposits, and fund transfers. Domestic investors who trade digital assets through registered platforms will be eligible for a 7% VAT exemption on their transactions, according to Suthiwartnarueput. The programme will run from April 1, 2022, through December 31, 2023, with the goal of encouraging people to use approved crypto exchanges.
Crypto in Thailand Banned as a Payment Method
The Asian nation has a contentious approach to the digital asset market. The Tourism Authority of Thailand (TAT) planned to create a utility token dubbed the TAT coin last year. The solution would allow tour operators to transfer vouchers and increase their liquidity. After the COVID-19 decline, it would also like to attract crypto owners who can settle in the Land of Smiles and help to boost the economy. Despite its support for the TAT coin, Thailand is not so enthusiastic about cryptocurrencies such as Bitcoin and altcoins. Authorities warned last month that they may undermine the banking system. Starting as a result, as of April 1, 2022, their use as a form of payment was forbidden. However, trading and investing in cryptocurrency remains legal, which is good news for the many HODLers in the United States. According to Bloomberg, Thais hold more than $3 billion in digital assets.