The central bank of Thailand Governor, Dr Veerathai Santiprabhob, stated that digital currency would not replace the fiat currency in the next 3 to 5 years in the country. This statement was reported by the Thailand local news outlet, Thai news Agency TNA, a state-owned news Agency on the 17th of November.
Replacing Digital Currency with Fiat Currency In Thailand
Against the wide expectation of most citizens of Thailand and the crypto community in the country, the governor of the bank of Thailand stated that the replacement of the fiat currency with digital currency will not take place immediately, but will be in the range of 3 to 5 years time.
Dr Veerathai Santiprabhob stated that the digital currency would not be replacing fiat because of complications, the readiness of citizens, and the efficiency of the technology. Notably, the factors listed by the governor as reasons for the delay of full use of digital currency in the country has caused the Waterloo of the introduction of digital currency in Venezuela.
Even though the bank of Thailand is yet to introduce the central bank-backed digital currency (CBDC), the central bank is undergoing the testing process for the use of digital currency for settlement of payment among financial institutions.
Also, the bank of Thailand also hopes that the full implementation of using digital currency among financial institutions would take place during the first quarter of 2019.
Introduction Of National Digital Currency
Interest in the use of national digital currency has been increasing for a while now, as many countries have considered the path due to economic hardship and increasing inflation.
Venezuela has introduced its national digital currency as a measure to combat the increasing rate of inflation and salvage the economy of the country, though the process has little or no success at the moment, due to the inappropriate organisation and international factor to an extent.
Iran, Turkey, among others are considering a similar step. Also, the poor economic condition in most countries has driven their citizens to the use of cryptocurrency for storage of value.
Meanwhile, the head of the International Monetary Fund (IMF) Christine Lagarde has urged central bank of countries to consider adoption of the features of digital currency for operation as digital currency continue its wide growth. Also, the international community was urged this month to consider the possibilities of endorsing CBDCs.