Initially, the bank planned to launch the project by the end of 2022 but was faced with several delays. It’s also worth mentioning that Thailand has no plans to actually launch a CDBC, which is why this pilot has more to do with learning and experimenting. The three payment providers that will take part in the project are the Bank of Ayudhya (Krungsri), Siam Commercial Bank, and Singapore-based payments service provider 2C2P.
Each of the three entities has developed its own app, which will become available to select users and will provide access to a QR scanner and a wallet.
Krungsri will enrol up to 2,000 staff members to participate in the CBDC pilot, as well as about 100 merchants located around the bank’s headquarters. It will also expand the project to its branch in Ploenchit. Siam Commercial Bank has decided to take on a similar approach. The project will run through August, and it will involve up to 10,000 total users.
The Bank of Thailand kicked off the development of a wholesale central bank digital currency (CBDC) in 2018, and since then, it has actively participated in several ventures, including the Project Inthanon-Lion Rock project in collaboration with the Hong Kong Monetary Authority, as well as the Bank for International Settlements’ mBridge cross-border payment project.
As Thailand is looking to learn more about central bank digital currencies and the role they could play in the local economy, the country is also keeping a close eye on crypto custody providers by introducing new rules designed to improve transparency and efficiency.
The new rules were revealed in January 2023 and mandate that companies that offer crypto custody services are required to implement a digital wallet management system in order to support efficient custody of digital assets and keys while ensuring the safety of clients’ assets.
These entities are also required to implement a series of guidelines and policies relating to the management of digital wallets and keys, and they should ensure proper communication channels to clarify such policies, action plans and procedures, work supervision, and internal control to ensure compliance with the policies.
Furthermore, the Securities and Exchange Commission (SEC) of Thailand requires crypto custodians to put in place policies and procedures for designing, developing, and managing digital wallets and keys.
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