“Our key motivation in exploring a retail CBDC rests on the assumption that privately- issued digital currencies could become widely adopted and systemically important in Thailand. If such a scenario occurs, users may be at risk and the nation’s financial and monetary stability as well as the integrity and safety of payment systems could be challenged.” BoT
Bank of Thailand
The BoT sought feedback for its own ambitions in the retail CBDC space.
In a document entitled “The Way Forward” describes the Project Inthanon aimed at wholesale CBDC solutions; signed by Sethaput Suthiwartnarueput the Governor of the BoT.
Now the BoT is moving its sights to retail CBDC. The primary motive is the risk of private currencies being adopted in Thailand.
The BoT identified risks as follows –
- Disintermediation of financial intermediaries
- Bank runs
- Security and Public Trust in the system
Hence the design of a new CBDC was seen as critical.
The Way Forward document identifies a 17 fold increase in cryptocurrency usage in Thailand with Thai Baht stablecoins now being considered by some institutions.