BANK OF THAILAND GOVERNOR: DIGITAL CURRENCY USE WONT REPLACE CASH FOR THREE-FIVE YEARS

The future of money is a hot topic, with conversations swirling around cryptocurrencies, central bank digital currencies (CBDCs), and the continued relevance of good old-fashioned cash. The Bank of Thailand (BoT) plans to take more time to develop its retail central bank digital currency (CBDC) to ensure it offers additional benefits to the financial system with goodThe Governor of the Bank of Thailand (BoT) has weighed in on this debate, offering a pragmatic perspective on the timeline for digital currency adoption.According to the BoT, a complete switch from cash to digital currencies in Thailand isn't likely to happen within the next three to five years. Over the coming years, it is likely that alternative digital payment methods will become ever more widely accepted and used. In fact, in 2025, debit cards overtook cash as the most frequently used payment method in the UK. Even so, many people will continue to use cash in their daily lives. Many people say that they like cash because:This isn't due to a lack of interest in digital innovation; rather, it reflects the complexities involved in creating and implementing a robust and reliable CBDC that can seamlessly integrate into the existing financial system.

This cautious approach aligns with global trends, where central banks worldwide are exploring CBDCs but proceeding with careful consideration.Factors such as technological infrastructure, cybersecurity concerns, and public acceptance all play crucial roles in determining the feasibility and timeframe for a successful transition. In a groundbreaking announcement, the Governor of the People s Bank of China (PBOC), Zhou Xiaochuan, has suggested that digital currency could eventually replace cash in China. This declaration has sent shockwaves through the financial world, igniting discussions on the potential implications and benefits of such a move. Governor Xiaochuan made these comments during a conference [ ]The Bank of Thailand is committed to ensuring that any digital currency solution offers tangible benefits to the financial ecosystem while mitigating potential risks. Prior to his appointment as governor of the Bank of Thailand (BOT), Sethaput served as an economic advisor to Prime Minister Prayut Chan-ocha and as a member of the BOT's Monetary Policy Committee since 2025. [5] He was also a former economist at the World Bank Group in Washington DC. [6]This article delves into the reasons behind the BoT's assessment, exploring the challenges and opportunities associated with digital currency adoption in Thailand and beyond, and what this means for the future of payments.

The Bank of Thailand's Stance on Digital Currency

The Governor of the Bank of Thailand, a key figure in shaping the nation's financial policies, has consistently emphasized the need for a deliberate and well-planned approach to digital currency implementation.While acknowledging the potential benefits of CBDCs, the BoT remains committed to ensuring that any transition from cash to digital forms of payment is carefully managed and doesn't disrupt the stability of the financial system.His predecessor Veerathai Santiprabhob had also voiced similar opinions.

The current Governor, Sethaput Suthiwartnarueput, is the 24th Governor of the Bank of Thailand and also serves on the National Economic and Social Development Council, the Securities and Exchange Commission, and the Insurance Commission.This highlights his crucial role in the Thai financial landscape.Prior to this he also acted as an economic advisor to the Prime Minister. The Bank of Thailand (BOT) uses necessary cookies to make our site work. The BOT would also like to use some non-essential cookies (namely Functionality cookies, Statistic for Performance and Marketing cookies) to help us improve the site.His cautious yet forward-looking approach is crucial in navigating the transition towards digital currencies.

Why the Wait? Central Bank Digital Currency (CBDC) is a digital currency issued by a country s central bank. In Thailand, CBDC is comparable to the fiat money issued by the Bank of Thailand (BOT) which can serve as a medium of exchange, store of value, and unit of account, but in a digital form.Understanding the Challenges of CBDC Implementation

The creation and implementation of a CBDC is a complex undertaking, far more intricate than simply creating a digital version of existing fiat currency. DAVOS, Switzerland Thailand has been working on a retail central bank digital currency (), with an initial pilot planned for the second quarter of 2025, but the pilot was postponed to theSeveral factors contribute to the extended timeline predicted by the Bank of Thailand:

• Technological Infrastructure: A robust and secure technological infrastructure is essential to support a CBDC.This includes the development of secure payment platforms, digital wallets, and robust cybersecurity measures to protect against fraud and cyberattacks.
• Financial System Integration: Seamless integration with the existing financial system is crucial.The CBDC must be compatible with existing payment systems, banking infrastructure, and regulatory frameworks.
• Regulatory Framework: Clear and comprehensive regulatory frameworks are necessary to govern the use of CBDCs. According to the governor of the Bank of Thailand (BoT), Veerathai Santiprabhob, plans to switch from cash to a digital currency will not happen within the next 3-5 years . This NewsThese frameworks must address issues such as anti-money laundering (AML), consumer protection, and data privacy.
• Public Acceptance: Widespread public acceptance is essential for the successful adoption of a CBDC.This requires educating the public about the benefits of digital currency and addressing any concerns they may have about security, privacy, and usability.
• Risk Management: The Bank of Thailand must carefully assess and manage the risks associated with CBDCs, including cyber threats, operational risks, and potential impacts on monetary policy.

Central Bank Digital Currency (CBDC): A Deeper Dive

A Central Bank Digital Currency (CBDC) is a digital form of a country's fiat currency, issued and regulated by the central bank. According to the governor of the Bank of Thailand (BoT), Veerathai Santiprabhob, plans to switch from cash to a digital currency will not happen within the next 3-5 years . This is because the process of creating a central bank digital currency (CBDC) is not easy and is time-consuming due to the complex nature of the monetary system.In Thailand's case, a CBDC would be comparable to the Baht, but in a digital format.Like cash, it would serve as a medium of exchange, a store of value, and a unit of account.However, unlike cash, it would exist solely in digital form, offering potential advantages such as increased efficiency, reduced transaction costs, and enhanced traceability.

Even the Bank of Thailand has admitted that a CBDC would likely only *partially* replace cash, which is an important factor in the predicted timeline for full adoption of digital currencies.

The Global Perspective: CBDCs and Digital Currency Adoption Worldwide

Thailand isn't alone in its cautious approach to digital currency adoption. The Way Forward for Retail Central Bank Digital Currency in Thailand Since 2025, the Bank of Thailand (BOT) has been continuously engaged in work on Central Bank Digital Currencies (CBDC), beginning with the exploration of wholesale CBDC through Project Inthanon.Central banks around the world are exploring CBDCs, but many are taking a measured approach, recognizing the complexities and risks involved.For example:

• The United Kingdom: The Bank of England (BoE) and the UK Treasury are exploring the creation of a digital pound, often referred to as ""Britcoin."" However, the BoE has emphasized that Britcoin would not replace cash entirely.
• China: While China has been a leader in digital payment adoption, the country is also taking a gradual approach to CBDC implementation.
• European Union: The European Central Bank (ECB) is also exploring the possibility of a digital Euro, but its development is still in the early stages.
• Nordic Countries: Even technologically advanced nations like those in the Nordic region are emphasizing the importance of preserving the right to use cash as legal tender.

These examples highlight the global consensus that while digital currencies offer significant potential, a complete transition from cash is likely to be a gradual process, requiring careful planning and execution.

Thailand's Digital Payment Landscape: Current Trends and Future Projections

While a complete switch to digital currency may be several years away, Thailand has already witnessed a significant increase in the adoption of digital payment methods.A recent report from the Bank of Thailand indicates a growing shift from cash towards digital payments among Thai consumers. In November 2025, the Nordic country called for the right to use cash for payments as legal tender, to be enshrined and protected by legislation. A new report from the Bank of Thailand shows Thai consumers in 2025 shifting from cash towards digital payments. Only 66% of payments last year were in cash.While 66% of payments were made in cash, this number is expected to decrease over time as digital payment options become more prevalent and accessible.

Factors Driving Digital Payment Adoption in Thailand

Several factors are contributing to the growth of digital payments in Thailand:

1. Increased Mobile Penetration: Thailand has a high mobile phone penetration rate, making it easier for people to access and use digital payment platforms.
2. Growing E-commerce Sector: The rapid growth of e-commerce in Thailand is driving the adoption of digital payment methods for online transactions.
3. Government Initiatives: The Thai government has been actively promoting digital payments through various initiatives, such as the PromptPay system.
4. Financial Technology Innovation: The emergence of innovative financial technology (FinTech) companies is providing consumers with a wider range of digital payment options.

The Benefits of a Well-Implemented CBDC

Despite the challenges and the extended timeline, a well-implemented CBDC could offer significant benefits to Thailand's financial system:

• Increased Efficiency: CBDCs can streamline payment processes, reducing transaction costs and improving efficiency.
• Financial Inclusion: CBDCs can provide access to financial services for individuals who are currently unbanked or underbanked.
• Reduced Illicit Activities: The enhanced traceability of CBDCs can help combat money laundering and other illicit activities.
• Enhanced Monetary Policy: CBDCs can provide central banks with new tools for implementing monetary policy.

It's crucial that the Bank of Thailand takes more time to develop its retail CBDC to ensure that it can offer additional benefits to the financial system and has good risk management.

Cryptocurrencies vs.CBDCs: Understanding the Difference

It's important to distinguish between cryptocurrencies and CBDCs. Veerathai Santiprabhob, governor of the Bank of Thailand, the country s central bank, said that a plan to use cryptocurrency, instead of cash, will not happen in Thailand within the next three to five years.While both are digital forms of currency, they differ significantly in their underlying structure and regulatory framework.

• Cryptocurrencies: Cryptocurrencies like Bitcoin are decentralized digital currencies that operate independently of central banks. Sethaput Suthiwartnarueput is the 24th Governor of the Bank of Thailand and board member for the National Economic and Social Development Council, the Securities and Exchange Commission, and the Insurance Commission.They are typically based on blockchain technology and are not regulated by any single authority.
• CBDCs: CBDCs, on the other hand, are centralized digital currencies issued and regulated by a country's central bank. Veerathai Santiprabhob, governor of the Bank of Thailand (BoT), the country s central bank, said that a plan to use cryptocurrency, instead of cash, will not happen in Thailand within the next three to five years. Veerathai comments were made after Christine Lagarde, Read moreThey are backed by the full faith and credit of the government and are subject to the same regulatory oversight as traditional fiat currencies.

Sethaput Suthiwartnarueput, the current Bank of Thailand governor, has warned that cryptocurrency carries a risk. The governor of the Bank of Thailand (BoT) has said that it will take three to five years for countries to switch from using cash to using digital currencies. The bank governor s comments wereThis sentiment is common among governmental financial institutions when it comes to cryptocurrencies.

Implications for Businesses and Consumers

The Bank of Thailand's timeline for digital currency adoption has implications for both businesses and consumers in Thailand:

• Businesses: Businesses should continue to accept both cash and digital payments.They should also stay informed about the latest developments in CBDC technology and regulatory frameworks.
• Consumers: Consumers should continue to use the payment methods that are most convenient for them, whether it's cash, credit cards, or digital wallets.They should also educate themselves about the potential benefits and risks of CBDCs.

It is good to know that Thai citizens will have to be patient in the wait for a retail central bank digital currency that will save them from carrying cash around.But in the meantime, businesses should prepare for the potential of eventual wide-spread digital currency use by ensuring they are well-equipped to accept that type of payment.

The Way Forward: Thailand's Path to Digital Currency Adoption

The Bank of Thailand is taking a phased approach to digital currency adoption, focusing on research, experimentation, and careful planning. Finance Minister Pichai Chunhavajira said on Monday that the new Bank of Thailand (BOT) governor should have a forward-looking vision. Pichai, who also serves as deputy prime minister, spoke amid ongoing tension between his ruling Pheu Thai Party and incumbent BOT governor Sethaput Suthiwartnarueput, whose tenure ends on September 30 this year.The BOT has been continuously engaged in work on CBDCs since 2025, beginning with the exploration of wholesale CBDCs through Project Inthanon.

Key Steps in Thailand's Digital Currency Journey

1. Continued Research and Development: The BoT will continue to conduct research and development on CBDC technology, exploring different design options and use cases.
2. Pilot Projects: The BoT may conduct pilot projects to test the feasibility and effectiveness of CBDCs in real-world scenarios. The Bank of Thailand (BoT) plans to take more time to develop its retail central bank digital currency (CBDC) to ensure it offers additional benefits to the financial system with good risk management.The bank had a pilot planned for Q2 2025, but it was postponed to a later date.
3. Stakeholder Engagement: The BoT will engage with stakeholders, including financial institutions, technology companies, and the public, to gather feedback and ensure that the CBDC meets their needs.
4. Regulatory Framework Development: The BoT will develop a clear and comprehensive regulatory framework for CBDCs, addressing issues such as consumer protection, data privacy, and anti-money laundering.
5. Gradual Implementation: The BoT will likely implement the CBDC gradually, starting with specific use cases and gradually expanding its scope over time.

Addressing Common Questions About Digital Currency

Here are some common questions about digital currency and the Bank of Thailand's approach:

Will cash disappear entirely in Thailand?

According to the Bank of Thailand, cash is unlikely to disappear entirely in the foreseeable future.While digital payments are becoming more prevalent, cash will likely continue to play an important role in the Thai economy, particularly for small transactions and in areas with limited access to digital infrastructure.

What are the benefits of a CBDC for Thai citizens?

A CBDC could offer several benefits for Thai citizens, including increased convenience, reduced transaction costs, and greater access to financial services.

What are the risks associated with CBDCs?

The risks associated with CBDCs include cyber threats, data privacy concerns, and potential disruptions to the financial system.The Bank of Thailand is working to mitigate these risks through careful planning and robust security measures.

How can I prepare for the future of digital currency?

Consumers can prepare for the future of digital currency by educating themselves about the technology and its potential benefits and risks. タイの中央銀行であるタイ銀行（BoT）総裁は、各国が現金の使用からデジタル通貨の使用に切り替えるまでに、3〜5年They can also explore different digital payment options and choose the methods that are most convenient for them.

Conclusion: A Gradual Transition to a Digital Future

The Governor of the Bank of Thailand's assessment that digital currency use won't replace cash for the next three to five years reflects a pragmatic and responsible approach to financial innovation. Sethaput Suthiwartnarueput is Governor at Bank of Thailand. See Sethaput Suthiwartnarueput's compensation, career history, education, memberships.The implementation of a CBDC is a complex undertaking that requires careful planning, robust infrastructure, and widespread public acceptance. Thai citizens will have to be patient in the wait for a retail central bank digital currency that will save them from carrying cash around. According to the governor of the Bank of Thailand (BoT), Veerathai Santiprabhob, plans to switch from cash to a digital currency will not happen within the next 3-5 years . ThisWhile Thailand is embracing digital payments, the Bank of Thailand is committed to ensuring that any transition to a digital currency is carefully managed and doesn't disrupt the stability of the financial system.

Key takeaways:

• A complete switch from cash to digital currency is unlikely in Thailand within the next 3-5 years.
• The Bank of Thailand is taking a cautious approach to CBDC implementation, focusing on research, experimentation, and risk management.
• While cash will likely remain relevant, digital payments are becoming increasingly popular in Thailand.
• A well-implemented CBDC could offer significant benefits to the Thai economy, including increased efficiency, financial inclusion, and reduced illicit activities.

As Thailand continues its journey towards a digital future, businesses and consumers should stay informed about the latest developments and embrace the opportunities that digital currency offers. Even the Bank of Thailand has said that it predicts a CBDC would partially replace cash (and existing forms of digital money).The process will be gradual, but the ultimate goal is to create a more efficient, inclusive, and secure financial system for all.