The idea of a central bank issued cryptocurrency is still in its early stages. And to take it to fruition it could take from 3 to 5 years, according to the governor of the Bank of Thailand. This is because the idea of central bank cryptocurrencies is still in its early stages. Engineers are still trying many concepts.
Bank of Thailand About Central Bank Cryptocurrencies
The idea of Central Bank Cryptocurrencies has been taken by many as a useful tool in the fight against the rising cost and scarcity of cash in some countries. But to go from the idea of wanting to use them to have the infrastructure and the resources to use it is another story.
That is the thought of Veerathai Santiprabhob, the governor of the Bank of Thailand. He thinks that while Central Bank Cryptocurrencies could really be useful in the future, it is still too early. The idea needs to mature at least for 3 or five years more. However, some things are already being done to try this new concept.
Project Inthanon is a local initiative of the Bank of Thailand for this objective. The objective of this project is to have a wholesale central bank cryptocurrency for inner transactions between commercial banks. This would really be an opportunity to test this tech before having a complete central bank cryptocurrency for the whole country. Eight commercial banks are running this test with the Bank of Thailand.
Central Bank Cryptocurrencies
Lately, there seems to be a rise in the interest of using cryptocurrencies as official currencies. Societies like Sweden, that is going cashless pretty soon, and countries like Venezuela, with a cash crisis, could benefit from these. Nonetheless, it is still in the nascent stages and adoption at this time could be riskful.
However, even Christine Lagarde, IMF (International Monetary Fund) chief, has argued in favor of using this kind of cryptocurrencies. According to her, the adoption of this kind of payment methods would make transactions quick and easy. And the security of a cryptocurrency based system is always top notch. The central banks will manage the whole transactional behind the scenes hard stuff. This would give commercial banks the freedom of just having to worry about innovation and business proposals.
Also, there is a theory that says that this kind of cryptocurrencies could help to manipulate better the interest rates. In any case, we will have to wait and see how this project moves into the future.