Bank of Thailand (BoT), Thailand Central Bank, has joined the likes of the People Bank of China, the Federal Reserve System (Fed) of USA, and the Bank of England (BoE) in the quest to develop central bank digital currencies (CBDCs). It has picked a German technology company called Giesecke+Devrient (G+D) to develop its CBDC.

The BoT announced that it had hired the German company to develop a proof of concept retail CBDC through a procurement announcement that was made on Sunday.

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The project, which is mainly to develop a CBDC prototype, will cost $320,000, an equivalent of 10 million baht. That includes registration fees, transportation, taxes among other expenses.

The G+D is a well-known technology company that generated about$2.3 billion in revenue in 2020 and is a great choice for BoT.

Sometimes bank, the BoT had placed a three to five years target for unveiling a retail CBDC and the hiring of the G+D indicates that the central bank is on course to ensure that it has hit its target. The bank started receiving public feedback in early April this year and it will stop on June 15.

Thailand central bank opted for a retail CBDC rather than a wholesale CBDC.

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What is the difference between a retail CBDC and a wholesale CBDC?

A wholesale CBDC is mainly used for interbank settlements while a retail CBDC is used just the same way that a nation’s currency is used.