Thailand’s Central Bank Eyes Creating Its Own Digital Currency for Interbank Settlements
The Bank of Thailand (BoT) is thinking about issuing its own cryptocurrency, the bank’s governor revealed in a speech on June 5.
In his keynote on Thai economic improvement at Nomura Investment Forum Asia (NIFA) in Singapore, BoT governor Veerathai Santiprabhob talked about another project in which the national bank and other Thai banks unite to build up another method for leading interbank settlement utilizing a central bank-issued digital currency (CBDC).
As indicated by the bank, the adoption of its own digital currency by the banking system would reduce the exchange and approval time and also its expenses because of less intermediation process required compared with the present systems.
Santiprabhob noticed that the bank isn’t organizing the appropriation of CBDCs, however, is centered on investigating the capability of the innovation. The bank governor focused on that the financial establishment is a “facilitator of innovation,” but on the other hand is a “regulator to safeguard financial stability”:
“Like 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.”
Thinking about the issuance of CBDCs, Santiprabhob also discussed the advantages of the financial intuitions embracing blockchain innovation, asserting that banks are ” “working closely with the financial industry” to bring the technology to “various banking applications.”
Thailand’s national bank is the most recent to consider the adoption of a CDBC. A month ago, Norway’s Norges Bank issued a working paper in which it thought about building up its own cryptocurrency as a way to supplement money and to guarantee trust in cash and the financial framework. Riksbank of neighboring Sweden is additionally researching the capability of an e-krona because of declining money circulation.
Prior today at his yearly live Q&A session, Russia’s President Vladimir Putin asserted that neither Russia nor any other country can have its own digital currency “by definition”, given crypto’s borderless nature.
