Digital Baht in Thailand: From Successful Testing to Regulatory Strategy
Date: 2024-04-29 Author: Oliver Abernathy Categories: IN WORLD
According to a Bank of Thailand report, the successful trial of the digital baht involved 4,000 consumers, 140 merchants and technology firm Giesecke+Devrient. Central Bank experts expressed satisfaction with the results, concluding that the introduction of a state stablecoin will contribute to the development of innovation in the field of payments.
Features of the pilot program
In addition to testing peer-to-peer and retail payments, the Central Bank of Thailand's pilot program also examined several payment functions of the digital baht. One of them is the ability of parents to control their children's purchases and manage their expenses.
Expectations for the future
However, the central bank is in no hurry to launch its own digital currency, since there is no urgent need for it. Instead, the Bank of Thailand plans to open a regulatory sandbox for private software payments and asset tokenization. He will also actively participate in the international mBridge project, testing Central Bank digital currencies together with the Hong Kong Monetary Authority (HKMA).
Tightening regulation of the crypto industry
While the Central Bank is promoting its innovations, the Thai authorities are tightening regulation of the crypto industry. Thailand's Securities and Exchange Commission (SEC) recently tightened ICO regulations for token issuers to protect investor rights. The agency also promised to block all unlicensed cryptocurrency exchanges operating in the country.
