The Bank of Thailand has indicated that a central bank digital currency (CBDC) will be tested in Q2 2022. In addition, Thailand has initiated steps to motivate the utilisation of cryptocurrencies. The Thailand Stock Exchange will assist with trading Bitcoin and other digital assets after Thailand’s approach to digital asset implementation.
Bank of Thailand to test its first central bank digital currency
Thailand is witnessing increased momentum in the crypto market as real estate developers and retailers incorporate cryptocurrencies. Instead of trying to inhibit the adoption rate of crypto amongst the citizens of Thailand by prohibiting cryptocurrency trading and mining, the nation’s governing entities are applying a regulatory framework.
In August 2021, according to Regulation Asia, the Bank of Thailand decided after it published the inferences from its central bank digital currency (CBDC) consultation that commenced in the dawn of 2021. The paper sought feedback on the profits, tests & trials, prospects, risks, suggestions, and industry status of retail central bank digital currency on Thailand’s fiscal scene.
As per the central bank digital currency consultation results, the Bank of Thailand stated that it had set up strategies for the testing and expanding central bank digital currency in a pilot test. The test was undertaken via two methods – the first, a foundational way, which tested and estimated the utilisation of CBDC in steering cash-like activities within a restricted scale. It included converting, accepting, or paying for commodities and services. The second track was an innovation track that tested and assessed how the central bank’s digital currency could develop further. In addition, it allowed private sector participation.
Despite apprehensions that the utilisation of crypto as a means of payment was a peril to Thailand’s banking sector, the nation’s financial authorities decided to inhibit its use merely.
According to a combined declaration from the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF), digital asset business enterprises have extended their business to encompass services related to the utilisation of de-centralised assets as a medium of payment for goods and services.
According to an anonymous source within the Finance Ministry, who unveiled information to the Bangkok Post last month, this plan will enforce a 15% capital gains tax on profits from crypto trading. In addition, all investors, taxpayers, and mining operators who benefit from cryptocurrencies will be subjected to a 15% holding tax.
The Bank of Thailand has also stated that a central bank digital currency will be tested in Q2 of 2022. Additionally, as a faction of a strategic cryptocurrency-tourism push, the government will augment its utility token – the TAT token.
To include into all of these developments, the Thailand Stock Exchange has declared that it would endorse assistance for digital assets, allowing traders to trade Bitcoin and other popular cryptocurrencies.
Thailand’s regulatory and governing entities will have no choice but to set up and implement a regulatory skeleton around cryptocurrencies for the prevailing crypto-related incidents. Despite apprehensions that digital currencies would directly affect the banking industry, Thailand has decided to regulate the currencies as a payment medium.
Instead of ensuring the footsteps of other nations, like China, which have gone ahead and prohibited cryptocurrency investing and mining, Thailand will seek measures to witness how crypto and blockchain technology can profit the nation and fabricate a regulatory framework that profits both citizens and the administration.