An undeclared race and competition is taking place between countries and governments around the world to develop a digital currency for the central bank to counter the tide of encrypted digital currencies and to keep pace with the accelerating pace towards the adoption of digital currencies, especially in light of the health conditions that the world is going through.

After Thailand announced the development of a central bank digital currency, Thailand updated its plans and said it was postponing the testing of its central bank digital currency (CBDC) until late 2022.

The test was initially scheduled for the second quarter of 2022, but has now been rescheduled to later in the same year.

Thailand Postpones CBDC Test:

According to the agency,ReutersThailand is looking to use CBDC as an alternative payment option to replace cash.

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While the delay is likely to be confirmed, the reason behind the central bank’s decision has yet to be confirmed.

Although the deputy director of the Bank of Thailand, hinted at the goal of focusing on efficiency, which may require working at a slow pace.

Thailand can still take a gradual step in the central bank currency and provision of retail transactions to ensure efficiency and prudence and to address the problems of money transfer or payments like some other countries.

But despite the delay, the testing phase is still expected to be used to carefully analyze central bank digital currency usage as it relates to transactions and how it can complement cash payments.

For the pilot project, about 10,000 users along with a few financial institutions will test the digital currency both offline and online including withdrawals, deposits and money transfers.

CBDC’s Popularity Rising as the World Goes Digital:

Without a doubt, the world is definitely heading towards a digital world, especially in light of the spread of the Corona virus.

These concerns have attracted the attention of most central banks as they continue to search for ways to provide an alternative to monetary transactions.

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In fact, some countries are now past the testing phase and are already using their own CBDC.

For example, Nigeria and the Bahamas are already actively using their own central bank digital currencies, while other countries such as Ghana and China are in the testing phase prior to the rollout.

There are some central banks that insisted that the central bank digital currency would not completely replace cash, but only complement it.

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