The Bank of Thailand (BOT) has laid out its plans following a recent study to begin testing a Retail Central Bank Digital Currency (Retail CBDC) in the second quarter of 2022.

BOT had conducted a study on the implications of a retail CBDC on the country’s financial sector as well as survey results from the public on its development based on the paper “The Way Forward for Retail Central Bank Digital Currency in Thailand” that was published in 2 April 2021.

The results of the study and feedback collected from the survey have been taken into consideration towards determining guidelines for the development and testing of Retail CBDC.

Based on the study and survey results, BOT said that it will be conducting the pilot under two tracks.

The pilot will begin with the “Foundation Track” which will test and evaluate the usage of CBDC in conducting cash like activities within a limited scale, such as accepting, converting, or paying for goods and services.

BOT will then move on to the “Innovation Track” in order to test and evaluate the ways in which CBDC can be further developed for innovative use cases, by allowing for participation from the private sector and technology developers.

The regulator said that it is currently in the process of considering the format and criteria for participation.

“The BOT will assess all results and associated risks from the pilot test, to ensure that Retail CBDC is beneficial to the public, business sector, and country as a whole, and does not undermine economic and financial stability in the future.”

said Vachira Arromdee, Assistant Governor of the Bank of Thailand in a statement.