The Bank of Thailand ( BOT) did research on Central bank Digital Currency’s risk on the financial system. And they pointed out three things that may lower the possible risks associated with the implication of CBDC.
Thailand’s authorities fear that the Central Bank Digital Currency may bring few dangerous risks for the Monetary policy and may result in problems for the traditional financial system of Thailand. The Bank of Thailand did research on this matter and they pointed out three things to lower the possible risks.
The three main key points suggested by the BOT to implement on the CBDC. These are
(1) the CBDC shall be cash-like and non-interest-bearing
(2) intermediaries such as financial institutions shall be the distributors of CBDC to the general public
(3) conditions or limits for converting CBDC shall be established
So according to these three key factors implication, Thailand will restrict any kind of interest system on CBDC. And they will maintain a position of the mediators in between the CBDC user and distributer by allowing the financial institutions as a distributor of CBDC. And also they will impose restrictions and limitations of CBDC conversion.
Well it’s really a good step by BOT in advance to lower the risk that they are considering to bring CBDC. Probably they will bring CBDC by next year. For now they will do trials where Bank of Thailand is only allowed, and other financial institutions can test CBDC until the full testing by BOT.