Thailand Is Not Rushing To Issue Retail Central Bank Digital Currency
Thailand doesn’t consider implementing the retail Central Bank Digital Currency (CBDC) a high priority given strong payment alternatives, according to the governor of Bank of Thailand.
Referring to the real-time online transfer option, PromptPay, as well as payments through QR code, Sethaput Suthiwartnarueput, the central bank’s governor, said he is satisfied with the Thailand’s current retail banking system.
Thailand’s central bank has a transparent ledger, which allows instant automated P2P transfers between local bank accounts in different banks. Also account holders are able to view their account balance on any bank ATM due to the transparency.
Suthiwartnarueput spoke with a local media TNN during the World Economic Forum 2022 in Davos, saying:
“The need to roll out CBDC is not that high.”
The governor also said that the central bank will run a test of the retail CBDC for the public in the Q4 this year. The project will be carried out on a limited scale, with financial institutions and users conducting deposits, withdrawals, and fund transfers.
Earlier on Tuesday, the Royal Gazette stated that investors who trade cryptocurrencies or digital tokens through registered exchanges, including the retail CBDC of the Bank of Thailand, will be eligible to a 7-per-cent VAT exemption.
The VAT exemption is retroactive from April 1, 2022 to December 31, 2023. The goal of this change is to encourage trading in digital assets through the authorized exchanges under regulations on digital assets.
Suthiwartnarueput said:
“Thailand was one of the first countries to explore and experiment with retail CBDC back in 2018.”
Crypto Payments Banned In Thailand
Thailand has a rather controversial approach to the digital asset industry. Last year, the Tourism Authority of Thailand (TAT) intended to design a utility token called the TAT coin. The product would enable the transfer of vouchers and help tour operators gain greater liquidity. It would also aim to attract crypto owners who can settle in the country and stimulate its economy after the COVID-19 pullback.
Despite the sympathy displayed towards the TAT coin, Thailand is not so supportive of cryptocurrencies in general. Last month, the authorities warned they could harm the financial network. As such, their usage as a means of payment was prohibited as of April 1, 2022.
However, trading and investing in crypto remains allowed, which is good news for the numerous domestic HODLers. Thais own over $3 billion worth of digital assets. The Thai crypto Exchange Bitkub achieved a unicorn valuation after local Siam Commercial Bank acquired 51% of its shares.
