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This month, the Bank of Thailand will launch a retail central bank digital currency (CBDC) pilot project in a regulatory sandbox. According to local media, three payment providers will take part in it. Up to 10,000 users will participate in the project and it will last until August.
Bank of Ayudhya (Krungsri), Siam Commercial Bank and Singaporean payment service provider 2C2P will partner with the Central Bank of Thailand on this project. Each of these organizations has made the app available to select users, which includes a wallet and a QR code scanner.
Krungsri will involve up to 2,000 employees in the project, as well as about 100 merchants located around the bank’s headquarters. It will also expand the project to its branch in Ploenchit. Sam Tanskul, Managing Director of Krungsri Innovate, said:
“The bank must define a strategy to differentiate retail CBDC from [его] PromptPay Services”.
Siam Commercial Bank’s pilot project will operate in the same way as Krungsri, with input from staff and nearby merchants.
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The pilot project was announced in August and was originally scheduled to launch in 2022. The Bank of Thailand called the project a “pilot study” rather than a pilot run. The central bank has no official plans to launch a CBDC.
Twenty commercial banks in #Hong Kong, #China, #UAE and #thailand used #mBridge and #CBDC to conduct payment and foreign exchange payment-versus-payment transactions on behalf of their corporate clients. Read the full report https://t.co/PhTtmQ8Lj4 pic.twitter.com/TE6Dv0dszr
— Digital Pound Foundation (@digitalpoundfdn) October 27, 2022
The Bank of Thailand announced the development of a wholesale CBDC in 2018. He has participated in the mBridge cross-border payments project of the Bank for International Settlements and Project Inthanon-Lion Rock with the Hong Kong Monetary Authority.
In March, the country abolished corporate income tax and value added tax for companies issuing investment tokens. A government spokesman said Thailand could lose about $1 billion in revenue, but investment tokens are expected to generate $3.7 billion over the next two years.