The Bank of Thailand recently conducted a pilot programme to test the feasibility of a retail Central Bank Digital Currency (CBDC), and the key findings have been revealed in an article by Fintech Singapore. The pilot programme, which ran from July to September 2021, aimed to explore the potential benefits and challenges of introducing a digital currency issued by the central bank for retail transactions.
One of the key findings from the pilot programme was that participants were generally positive about the concept of a retail CBDC. They appreciated the convenience and security of using a digital currency issued by the central bank, as well as the potential for faster and more efficient transactions. Participants also noted that a retail CBDC could help promote financial inclusion by providing access to digital payment services for underserved populations.
Another important finding from the pilot programme was that participants had concerns about privacy and data security when using a retail CBDC. Many participants expressed worries about the collection and use of their personal information by the central bank or other parties involved in the digital currency ecosystem. This highlights the need for robust data protection measures to be implemented in any future retail CBDC system.
Additionally, the pilot programme revealed that there are still technical challenges to be addressed before a retail CBDC can be rolled out on a larger scale. Participants reported issues with transaction speed and reliability, as well as concerns about the scalability of the system to handle a high volume of transactions. These technical challenges will need to be overcome before a retail CBDC can be implemented successfully.
Overall, the findings from the Bank of Thailand’s retail CBDC pilot programme provide valuable insights into the potential benefits and challenges of introducing a digital currency issued by the central bank for retail transactions. While participants were generally positive about the concept of a retail CBDC, there are still important issues to be addressed before such a system can be implemented on a larger scale. With further research and development, a retail CBDC could potentially offer significant advantages for consumers and businesses in Thailand and beyond.