Bank of Thailand to pilot Retail CBDC by end of 2022

Retail CBDC will be tested in a limited retail environment with 10,000 participants and three major banks.

In addition to its Central Bank Digital Currency (CBDC) wholesale projects and Retail CBDC proof-of-concept testing with businesses, the Bank of Thailand (BOT) will expand the scope of CBDC development intended for the retail trade in a pilot phase. A possible real application of the "Retail CBDC" will be carried out inside the private sector on a limited scale.

As the August 5 announcement on the official BOT page says:

"The BOT will assess the associated benefits and risks of the pilot to formulate related policies and improve the design of the CBDC in the future."

The driver is split into two tracks. During the first - a "basic track" - the CBDC will be tested in cash-like activities, i.e. payment for goods and services, in limited areas and at a scale of 10,000 retail users. Three companies will participate in the experiment: Bank of Ayudhya, Siam Commercial Bank and 2C2P. Testing is expected to start in late 2022 and last until mid-2023.

A second phase called "Innovation track" will focus on presenting innovative use cases for CBDC. The private sector and the public will have the opportunity to showcase their use cases for Retail CBDC via a "CBDC Hackathon", which will take place from August 5 to September 12, 2022. Selected participants will benefit from mentorship from experienced financial institutions. < /p>

In the meantime, the BOT does not plan to issue retail CBDCs, “because issuance requires careful consideration” of the risks and benefits to the broader financial system.

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