Live from Digital Currency Conference with Daranee Saeju [Episode #29]

Welcome to another episode, recorded live from London at the Digital Currency Conference. This episode features a fireside chat in front of a live audience, where we had the pleasure of hosting Daranee Saeju, the Assistant Governor of the Central Bank of Thailand. Moderated by Jens Seidl, CEO of Currency Research, the discussion explored advancements in Thailand’s payment systems, focusing on Central Bank Digital Currencies (CBDCs), real-time payment systems, and the regulatory landscape for stablecoins.

Wholesale CBDC Initiatives

Daranee begins by discussing the extensive experimentation with wholesale CBDCs that the Central Bank of Thailand has been conducting since 2018. The primary goal of these initiatives is to enhance payment and settlement processes, particularly for cross-border transactions. The CBDC experiments have led to significant improvements in transaction speed and cost reduction as well as minimizing settlement risk associated with cross-border payments.

Real-Time Payment Systems

The discussion then shifts to Thailand’s real-time payment system, known as “PromptPay.” Daranee explains that this system was introduced as part of the national e-payment strategy in 2016. PromptPay has revolutionized the payment experience in Thailand, allowing users to transfer money quickly and efficiently through standardized QR codes.

Cross-Broder Payment Initiatives 

The conversation also touches on cross-border payment initiatives, particularly the integration of QR code payments with neighboring countries in the ASEAN region. The Central Bank views the wholesale CBDC initiatives and real-time payment systems as complementary. While retail CBDC experiments have shown promise, the existing fast payment system has proven highly efficient for retail transactions.

Stablecoins and Regulatory Landscape

The discussion then shifts to stablecoins, with Daranee providing insights into the regulatory approach taken by the Central Bank. The Central Bank has been cautious regarding the use of stablecoins for payments, having prohibited their use in Thailand and is exploring the potential benefits of stablecoins through an enhanced regulatory sandbox, focusing on programmable payments and various use cases such as supply chain financing and escrow payments.

Digital Public Infrastructure

As the conversation progresses, Daranee discusses the broader context of digital public infrastructure in Thailand. The Central Bank is actively working with other central banks to ensure that payment systems can communicate effectively, reducing fragmentation and enhancing efficiency.

Conclusion

As the episode draws to a close, Jens and Daranee reflect on the reactions from domestic banks and payment providers regarding the Central Bank’s cross border initiatives.

Stay tuned for more insights from Payments, Innovation and Technology Week!

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