Krungsri staff members and around 100 merchants located near Krungsri’s head office will test the digital currency
To launch the retail central bank digital currency (CBDC), the Bank of Thailand is collaborating with three entities with the objective of increasing the efficiency of financial transactions. Bank of Ayudhya (Krungsri), Siam Commercial Bank (SCB), and 2C2P (Thailand) Co. are the three payment service providers selected to run the CBDC test.
Krungsri staff members and around 100 merchants located near Krungsri’s head office will test the digital currency. With a total of 10,000 participants, the number of staff members is expected to increase to 2,000, as estimated by the central bank. The pilot period will last from June to August this year.
Focusing instead on stabilising the payment system, especially during peak periods, Krungsri has not set a limit on transaction value. CBDC users will be able to pay for goods and services, while another likely scenario is paying out social benefits in digital baht.
The country’s digital economy should benefit in the long term from the adoption of digital baht, according to Krungsri managing director Sam Tanskul. The Bank of Thailand considers the pilot project educational and a step towards a full-scale launch.
Thailand authorities set foot in the CBDC back in May 2019 when Project Inthanon-LionRock was initiated and the MOU signed by the Hong Kong Monetary Authority and the Bank of Thailand to study the application of CBDC for cross-border payments.
CIO News, a proprietary of Mercadeo, produces award-winning content and resources for IT leaders across any industry through print articles and recorded video interviews on topics in the technology sector such as Digital Transformation, Artificial Intelligence (AI), Machine Learning (ML), Cloud, Robotics, Cyber-security, Data, Analytics, SOC, SASE, among other technology topics