The Central Bank of Thailand recently announced tests of its CBDC and is currently using this currency for financial transactions with some large companies. In January this year, BOT successfully tested a massive transfer of funds through CBDC as part of the Inthanon project, which includes 8 financial institutions.
The digital currency of the Central Bank of Thailand will be backed by tangible assets such as the Thailand International Reserve. Thanks to this, it will behave like a stablecoin.
Although CBDCs were initially treated as central bank cryptocurrencies, they have more to do with digital fiat money than with bitcoin. Nevertheless, they are powered by blockchain technology, just like cryptocurrencies.
Thailand will start CBDC tests in September in cooperation with Hong Kong
The president of BOT - Vachira Arromdee, announced that Thailand is planning to enter the next, third phase of the development of its digital currency and expand its activities. Consequently, in September 2020, Thailand will use CBDC to conduct transactions with Hong Kong's monetary authorities.
Now that Thailand is taking decisive steps in the development of central bank digital currencies, it looks like Asian countries could become leaders in CBDC development.
In addition, BOT wants to introduce digital Baht to the public space in the future in order to reduce transaction costs. Before this happens, however, comprehensive research is needed to check whether it will have negative consequences for commercial banks.
China is developing its CBDCs more and more dynamically
As noted by Vachira, the introduction of the digital yuan into the public space in China has so far not negatively impacted the Chinese financial system.
China is currently the leader when it comes to CBDC and is starting to introduce its digital yuan faster and faster on new levels. In the near future, tests will begin on the food delivery platform operated by Tencent. The platform currently has over 435 active million users.
What's your opinion on this? Will Asia be the leader of state digital currencies? Leave your opinion in the comments.
