Thailand, which launched a large-scale pilot central bank digital currency (CBDC) last year, continues its pioneering digital token payments to its 50 million low-income citizens, with the aim of encouraging spending in local communities. ing. The 500 billion baht ($13.7 billion) plan was announced by Prime Minister Sureta Thavisin last month and is expected to start at the end of this year.
The initiative, previously rumored to be funded by borrowing that would increase the country's public debt, will instead be funded from Thailand's fiscal budget for the next two years. State-owned agricultural banks and agricultural cooperatives will also contribute, providing digital capital to an additional 17 million Thais. The program is expected to boost Thailand's GDP by up to 1.6%.
The pilot retail CBDC launched by the Bank of Thailand last year has been adopted by 140 merchants, 4,000 consumers and two of Thailand's largest banks, and is an effective way to foster innovation and foster competition among financial service providers. It was welcomed as a tool. However, the central bank recently announced that it has “no immediate plans” for a digital baht.
Brunello Rosa, CEO and head of research at Rosa & Roubini Associates, said of central banks' entry into CBDCs last year, “Crypto assets and stable This is an advance by China, which officially launched e-CNY (digital yuan) in February 2022, and not just in response to the challenges posed by coins.
However, not all central banks are actively working on digital currencies. “The European Central Bank and the Bank of England are catching up on the digital euro and digital pound projects,” Rosa said. It is the world's key currency. ”
Thailand, which launched a large-scale pilot central bank digital currency (CBDC) last year, continues its pioneering digital token payments to its 50 million low-income citizens, with the aim of encouraging spending in local communities. ing. The 500 billion baht ($13.7 billion) plan was announced by Prime Minister Sureta Thavisin last month and is expected to start at the end of this year.
The initiative, previously rumored to be funded by borrowing that would increase the country's public debt, will instead be funded from Thailand's fiscal budget for the next two years. State-owned agricultural banks and agricultural cooperatives will also contribute, providing digital capital to an additional 17 million Thais. The program is expected to boost Thailand's GDP by up to 1.6%.
The pilot retail CBDC launched by the Bank of Thailand last year has been adopted by 140 merchants, 4,000 consumers and two of Thailand's largest banks, and is an effective way to foster innovation and foster competition among financial service providers. It was welcomed as a tool. However, the central bank recently announced that it has “no immediate plans” for a digital baht.
Brunello Rosa, CEO and head of research at Rosa & Roubini Associates, said of central banks' entry into CBDCs last year, “Crypto assets and stable This is an advance by China, which officially launched e-CNY (digital yuan) in February 2022, and not just in response to the challenges posed by coins.
However, not all central banks are actively working on digital currencies. “The European Central Bank and the Bank of England are catching up on the digital euro and digital pound projects,” Rosa said. It is the world's key currency. ”