Apparently, Thailand’s authorities are not in a hurry to push a central bank digital currency (CBDC) for retail use. Several alternative payment methods are available to Thais, according to the Governor of the Bank of Thailand.
CBDCs are not that necessary
A CBDC has been proposed by Thailand among other nations. In 2020, the country’s central bank will test how the financial product interacts with local businesses. The Bank of Thailand is also planning on expanding the use of the CBDC to the general public, according to Assistant Governor Vachira Arromdee.
The government announced their intention to use the national digital currency in place of cash at the end of last year. There were, however, some experiments to be completed, scheduled for the end of 2022.
In a recent local report, Thailand’s central bank Governor Sethaput Suthiwartnarueput said that he is happy with how Thailand’s retail banking network is currently operating. It was not necessary to establish a CBDC, he argued.
The bank plans to conduct tests of the new product during the fourth quarter of 2022, said the official. Private consumers and monetary institutions will support this initiative by withdrawing, depositing, and transferring funds.
Furthermore, Suthiwartnarueput pointed out that domestic investors who trade digital assets through registered platforms will be exempt from 7% VAT on such transactions. To encourage the use of authorized crypto exchanges, the program runs from April 1, 2022, to December 31, 2023.
Thailand bans crypto as a payment method
China approaches the digital asset industry with a somewhat controversial approach. A utility token called the TAT coin was intended to be designed by the Tourism Authority of Thailand (TAT) last year. As a result, tour operators would gain greater liquidity and be able to transfer vouchers. The Land of Smiles would also like to attract crypto owners who can settle there and contribute to the economy after COVID-19 is pulled back.
Thailand has not been very supportive of cryptocurrencies such as BTC or altcoins, despite its sympathy for the TAT coin. Authorities warned last month that altcoins could negatively impact the financial system. As a result, they will no longer be available for payment as of April 1, 2022.
The good news for the many domestic HODLers is, however, that trading and investing in crypto remain legal. Bloomberg reported that Thais own digital assets worth over $3 billion.