The Bank of Thailand is preparing to launch a retail central bank digital currency (CBDC) pilot project in a regulatory sandbox this month, after experiencing a delay from last year. Local media reports indicate that three payment providers will participate in the project, which will involve up to 10,000 users and run until August.
Partnering with the Thai central bank on this initiative are the Bank of Ayudhya (Krungsri), Siam Commercial Bank, and Singapore-based payments service provider 2C2P. Each of these organizations has developed its own app, which has been made available to selected users and includes features such as a wallet and a QR code scanner.
Krungsri intends to involve up to 2,000 of its staff members in the pilot, along with approximately 100 merchants located near the bank's headquarters. The project will also expand to include Krungsri's Ploenchit branch. Sam Tanskul, the Managing Director of Krungsri Innovate, emphasized the need for the bank to establish a strategy that sets the retail CBDC apart from its existing PromptPay service.
Originally announced in August, the pilot project was initially planned for launch in 2022 but encountered delays. The Bank of Thailand has described the initiative as a "pilot to learn" rather than a full-fledged CBDC launch. Currently, the central bank has no official plans for a CBDC rollout.
Bank of Thailand Advances CBDC Development and Encourages Digital Asset Adoption with Tax Incentives, Aims for Economic Boost
The Bank of Thailand has been actively involved in the development of a wholesale CBDC since 2018. It has participated in projects like the Bank for International Settlements' mBridge cross-border payment initiative and the Project Inthanon-Lion Rock collaboration with the Hong Kong Monetary Authority.
In a move to encourage the adoption of digital assets, Thailand waived corporate income tax and value-added tax for companies issuing investment tokens in March. While this decision is expected to result in a loss of around $1 billion in revenue, it is anticipated that investment tokens will generate approximately $3.7 billion over the next two years.
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