With the growing rate of digital asset adoption across the whole world, there have been constant calls for digital currencies. Even though some countries are working on it more than others, most countries have rolled out prospective regulations to help them develop it.
In a recent update by the Bank of Thailand, they are preparing to roll out a framework that would guard the development of their digital currency. With the country rolling the guidelines out any moment from now, they have called for input from people on how they want the regulation guarding the digital currency should be.
The Bank wants to roll out two types of CBDC
In the statement, the Bank talked about two types of stablecoins that they are looking at while stressing that their new stablecoin must be backed by their native currency. This recent ploy by the Bank is entirely different from what other banks are adopting, with most of them choosing to either go the fiat or non-fiat way of developing their digital currencies.
A typical example is rolling out a dollar-backed stablecoin while others are rolling out a stablecoin that will be backed by precious metal, gold. The Bank has also pointed out that the baht-backed stablecoin would be used mainly for payments online, quoting the previous Payments System Act rolled out in 2017 as a major framework.
It also pointed out that for people to offer stablecoin to other users, they would need to follow a process that would see them take approval from the premier Bank in the country. The Bank mentioned that frameworks like these are adopted in most countries worldwide, with the Bank making mention of Singapore and the likes.
BoT welcomes public opinion
Even though the Bank spoke at length about the baht-backed stablecoin, it has revealed little to no details about the second type of stablecoin. It has been mentioned that stablecoins can either be backed by assets, foreign currencies, or algorithmic stablecoins. In Thailand’s crypto sector, people have enough room to influence the decision of policymakers.
The Bank had also told the general public that they have opened up rooms for people to give their opinion regarding what they think about the stablecoins. “We hope that the people would be able to give us their own opinion about the kind of guidelines to use in the sector,” the Bank said.
The Bank has also mentioned that it is hoping to roll out a CBDC that would help retail traders. It pointed out that it intends to help increase people’s access to cash and meet the demands of its citizens. The Bank previously announced that it has been planning to release the digital currency for a long time, with a previous announcement last year stating that the coin was almost done.
