RSUSCI-2022 & RSUSOC-2022

IN22-004 Potential Acceptance of Upcoming Thai Retail CBDC (Central Bank Digital Currency) in Thailand

Presenter: Rattapol Kasemrat
Digital Economy, Faculty of Economics, Rangsit University

Abstract

Digital currency is being quickly adopted in Thailand. It has been claimed that Thailand is number 3 in the entire world, in which Thai people have adopted decentralized finance (DeFi) after the U.S. and Vietnam. Besides, the value of cryptocurrency trading has increased enormously – at least 17 folds – from 143 million USD in 2018 to 2489 million USD in 2020. Numerous central banks, including the Bank of Thailand (BOT), are paying attention to this wave of technology; as a result, CBDCs (Central Bank Digital Money), digital currency issued by each country’s central bank and usable as cash, have been created by many central banks worldwide. However, due to their new arrival, CBDCs may be unfamiliar to Thai citizens and organizations. For this reason, it is worthwhile to investigate 1) the acceptance of retail CBDCs in Thailand and 2) the factors that may affect the acceptance of retail CBDCs in Thailand. Data was gathered using an online questionnaire conducted with 648 Thais who were familiar with the use of E-money. The data obtained were then subjected to binary linear regression analysis. Gender, employment, age, education level, income, media, and experience in using E-money were the independent variables whereas the adoption of Thai retail CBDC in the country was the dependent variable. Gender and E-money were the two-dummy factors. The results found two major independent variables that encourage the adoption of Thai retail CBDC; media and experience of using E-money. The greater the use of media, the more adoption rises. Adoption could even be greater when people have experience in the use of E-money. Nevertheless, other independent variables (gender, age, education level, and income) did not seem to influence the adoption. Recommendations were developed based on the results. The first is that the quantity of these media with high-quality content should be increased to raise Thai residents’ awareness as media use leads to a greater adoption rate. Besides, since the E-money experience increases CBDC adoption, another suggestion is that E-money providers should encourage their consumers to embrace CBDCs by, for example, providing relevant CBDC information as part of their service.

Citation format:

Kasemrat, R., & Kraiwanit, T.. (2022). Potential Acceptance of Upcoming Thai Retail CBDC (Central Bank Digital Currency) in Thailand. Proceeding in RSU International Research Conference, April 30, 2022. Pathum Thani, Thailand.