Bank of Thailand Governor: No Central Bank Digital Currency Within 3-5 Years

Bank of Thailand Governor: No Central Bank Digital Currency Within 3-5 Years 1

Thai citizens will have to be patient in the wait for a retail central bank digital currency that will save them from carrying cash around.

According to the governor of the Bank of Thailand (BoT), Veerathai Santiprabhob, plans to switch from cash to a digital currency will not happen within the ‘next 3-5 years’. This is because the process of creating a central bank digital currency (CBDC) ‘is not easy’ and is time-consuming due to the complex nature of the monetary system.

Santiprabhob noted that though there has been significant progress with regards to CBDCs in some developed countries, it will be harder to replicate that success in developing countries within the next half a decade.

Project Inthanon

While the Bank of Thailand has not announced any plans for a retail CBDC (digital currencies meant for use by the general public in transactions), it announced three months ago that it had commenced work on a wholesale CBDC (digital currency meant for use by financial institutions in settling inter-bank payments, cross-border transfers etc.)

As CCN reported at the time, BoT is using the Corda distributed ledger technology platform in building the proof-of-concept prototype which will be used in enabling fund transfer among local banks. Dubbed ‘Project Inthanon’, eight commercial banks are participating in the initiative spearheaded by the BoT. The first phase of the project is expected to end by next year in March. During the second phase the initiative will embark on widening the scope:

“Building upon the findings and outcomes from Phase 1, the project participants aim to further develop the capabilities of the prototype for broader functions including third party funds transfer and cross-border funds transfer.”

Public Policy Goals of CBDCs

The comments by the BoT governor come in the wake of a call on central banks by Christine Lagarde, the head of the International Monetary Fund, to consider issuing CBDCs. According to Lagarde, such CBDCs should achieve three public policy objectives:

“This currency could satisfy public policy goals, such as (i) financial inclusion, and (ii) security and consumer protection; and to provide what the private sector cannot: (iii) privacy in payments.”

Though Santiprabhob did not touch on the risks associated with CBDCs, Lagarde warned that there are three downsides to the state-backed digital currencies. Besides posing a risk to financial integrity and stability, the IMF boss noted that CBDCs held the potential to stifle innovation. This is because with central banks offering a full-service solution that extended from the digital wallet to back-end-settlement services, a lot of fintech firms and other players in the sector would go out of business.

However, this could be solved by central banks forging partnerships with banks and other players in the sector with the role of the central banks being limited to back-end-settlement while their partners handle client interface and innovation.

Featured image from Flickr/World Economic Forum.

Follow us on Telegram or subscribe to our newsletter here.

Advertisement



About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 61,823.00
ethereum
Ethereum (ETH) $ 3,865.92
binance-coin
Binance Coin (BNB) $ 476.75
cardano
Cardano (ADA) $ 2.23
tether
Tether (USDT) $ 0.99973
xrp
XRP (XRP) $ 1.14
solana
Solana (SOL) $ 159.79
polkadot
Polkadot (DOT) $ 44.30
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.239842
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 61,823.00
ethereumEthereum (ETH)
$ 3,865.92
tetherTether (USDT)
$ 0.99973
bitcoin-cashBitcoin Cash (BCH)
$ 632.93
litecoinLitecoin (LTC)
$ 191.29
bitcoinBitcoin (BTC)
53.245,99
ethereumEthereum (ETH)
3.329,58
tetherTether (USDT)
0,861032
bitcoin-cashBitcoin Cash (BCH)
545,12
litecoinLitecoin (LTC)
164,75
bitcoinBitcoin (BTC)
45,131.10
ethereumEthereum (ETH)
2,822.14
tetherTether (USDT)
0.729808
bitcoin-cashBitcoin Cash (BCH)
462.04
litecoinLitecoin (LTC)
139.64

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

ICo Presale
The Science Behind ICO Presales…
October 14, 2021
Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin61,874 0.22 % 4.45 % 14.56 %
Ethereum3,865.0 0.07 % 0.76 % 8.61 %
Binance Coin477.30 0.03 % 1.19 % 14.10 %
Cardano2.230 0.35 % 2.21 % 0.01 %
Tether0.9986 0.03 % 0.08 % 0.23 %
XRP1.140 0.12 % 0.61 % 7.74 %
Solana159.56 0.40 % 5.43 % 0.40 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Dogecoin0.2393 0.34 % 1.87 % 1.52 %

bitcoin
Bitcoin (BTC) $ 61,823.00
ethereum
Ethereum (ETH) $ 3,865.92
binance-coin
Binance Coin (BNB) $ 476.75
cardano
Cardano (ADA) $ 2.23
tether
Tether (USDT) $ 0.99973
xrp
XRP (XRP) $ 1.14
solana
Solana (SOL) $ 159.79
polkadot
Polkadot (DOT) $ 44.30
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.239842