Following a study and public survey, the Bank of Thailand has outlined the direction for piloting its retail central bank digital currency (CBDC). In June, it awarded a contract for a CBDC prototype to central bank service provider G+D.
Its study around CBDC design concluded that it doesn’t want to impact monetary policy, incumbent banks, or financial stability. Hence its CBDC will not pay interest, will be distributed via financial institutions, and there will be caps on conversion into a CBDC. The central bank envisages the CBDC partially substituting both cash and existing e-money.
Additionally, the Bank of Thailand conducted an online survey and ran focus groups about the potential digital currency. Feedback was positive, with some respondents suggesting that the public be educated about the potential benefits of a CBDC versus existing electronic payment methods.
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