The financial institution considers it necessary to test the retail CBDC with the collaboration of the private sector. However, they have not rushed to implement it, saying there are enough alternative payment options.
The Central Bank of Thailand recently announced it would start testing its CBDC late in the year. The institution stated that the process would occur from the end of 2022 to mid-2023. It also said it recognizes the importance of CBDCs as a new financial infrastructure.
For that reason, the central bank believes it must test the retail CBDC with the collaboration of the private sector. That significant step indicates that the Asian nation is eager to benefit from the technology behind digital assets.
According to the central bank, the pilot test will focus on two priorities: the Foundation track and the Innovation track. The former focuses on the efficiency and security of the technology supporting the CBDC. The activities in this category will be payments for goods and services, involving 10,000 retail users and three companies selected.
Thailand Seems to Be Increasingly Close to Cryptocurrencies
In April 2022, some discussions about new cryptocurrency regulations led to stifling this market in Thailand. The growing regulatory activity has prompted the oldest bank to block its acquisition of a stock exchange.
The Central Bank of Thailand has decided not to rush the implementation of its CBDC. While the head of the institution said there were enough alternative payment options, regulators postponed taxes on crypto transactions until 2024.
Experiments with CBDCs Have Become a Priority in Leading Countries
Besides regulating cryptocurrencies, governments and regulators have seen CBDCs as the most crucial issue. Most leading countries are working on their central bank digital currencies and have started running pilot tests.
The benefits of technology are evident to many governments that want to use it for national and international transactions. Most countries agree with allowing cryptocurrencies to co-exist with digital versions of fiat currencies.
Meanwhile, Jack Dorsey’s Block Inc. Posts a USD 1.5 Billion Profit in 2022 Q2
Digital payments company Block Inc, the financial service owned by former Twitter CEO Jack Dorsey, published its second-quarter results. Although the profits rose by 29% to USD 1.47 billion, the Bitcoin revenue of the firm slumped.
The Bitcoin revenue of the company in the second quarter of 2022 was USD 1.79 billion. Although it represents a 34% drop, they consider that their gross profit was just USD 41 million.
The firm stated that it saw a decline in consumer demand and the Bitcoin price due to uncertainty about crypto assets. They added that their BTC holdings suffered a USD 36 million loss in value, which did not affect their performance.
Meanwhile, Bitcoin is trading at around 23,000 and has accumulated a 5% gain over the last week. While its trading volume is above USD 35.58 billion, its market capitalization is about USD 350.45 billion, according to CoinGecko.
By Alexander Salazar
