Thailand's Central Bank Eyes Creating Its Own Digital Currency for Interbank Settlements
The Bank of Thailand (BoT) is considering issuing its own cryptocurrency, the bankâs governor revealed in a speech June 5.
In his keynote on Thai economic development at Nomura Investment Forum Asia (NIFA) in Singapore, BoT governor Veerathai Santiprabhob spoke of a new project in which the central bank and other Thai banks join forces to develop a ânew way of conducting interbank settlementâ using a central bank-issued digital currency (CBDC).
According the bank, the adoption of its own cryptocurrency by the banking system would reduce the transaction and validation time as well as its costs âdue to less intermediation process needed compared to the current systems.â
Santiprabhob noted that the bank is not prioritizing the adoption of CBDCs, but is focused on exploring the potential of the technology. The bank governor stress ed that the financial institution is a âfacilitator of innovation,â but is also a âregulator to safeguard financial stabilityâ:
âLike other central banks, our goal is not to immediately bring CBDC into use, but rather to explore its potential and implications for back office operations.â
In addition to considering the issuance of CBDCs, Santiprabhob also talked about the benefits of the financial system adopting blockchain technology, claiming that banks are âworking closely with the financial industryâ to bring the technology to âvarious banking applications.â
Thailandâs central bank is the latest to consider the adoption of a CDBC. Last month, Norwayâs Norges Bank issued a working paper in which it considered developing its own digital currency as a means to supplement cash and to âensure confidence in money and the monetary system.â Riksbank of neighboring Sweden is also investigating the potential of an e-kro na as a result of declining cash circulation.
Earlier today at his annual live Q&A session, Russiaâs President Vladimir Putin claimed that neither Russia nor âany other countryâ can have its own cryptocurrency âby definitionâ, given cryptoâs borderless nature.Source: Google News Thailand | Netizen 24 Thailand