Cryptocurrency or digital currency or virtual currency response has taken the world by storm. The idea is that this cryptocurrency is going to be the biggest technological invention since the invention of the Internet. Demand for this specialty has grown significantly as a result of recent corporate scandals. However, cryptocurrency is a nightmare for the central bank of any country in the world. Central banks are reluctant to do their transactions through crypto. Cryptocurrency has been declared illegal in many countries of the world, such as our Bangladesh. Using crypto like bitcoin is completely illegal in Bangladesh. The reason behind this is very clear.
Cryptocurrency transactions do not require any third party later. That is, if the transaction is done with cryptocurrency, then there is no need for an institution called a bank. This is because the transaction takes place directly between the customer and the sender. This transaction process is done through blockchain technology. Banks usually make a profit through customer transactions and other services. That is, the bank sets a price for the service that customers will receive from the bank to manage financial matters. The banks themselves benefit from the money that comes from there.
These services can be financial transactions, credit cards, debit cards, etc., savings certificates, tax or tax issues. The lion's share of the income comes from financial transactions. If cryptocurrency is introduced, banks will not be needed. But then the economic institution called bank may be completely wiped out. The central bank also has an eye on any transaction. As a result of this central bank surveillance, black money, illegal transactions, etc. are greatly reduced. These are the main reasons why central banks have banned cryptocurrencies.
However, cryptocurrency is not something that can be used. The technology used in cryptocurrency is the technology that banks can use to secure their transactions. Blockchain technology will easily make transactions in the banking sector more efficient. In addition, there is less fear of online hacking in cryptocurrency transactions. This technology can be used for full control of the central bank without compromising the decentralization of crypto transactions. Developed countries are using crypto in this way.
In keeping with the modern world and the growing popularity of Bitcoin among the people, the Central Bank of Thailand, the Bank of Thailand, has announced that they will be launching cryptocurrency in the first four months of 2019 and will be fully responsible for it. The official name of their new virtual currency will be Central Bank Digital Currency (CBDC). At first, they will start this journey with eight more commercial banks.
Their main goal here is to verify the acceptability of cryptocurrencies. This will be verified through economic transactions inside Thailand. It will be a lot of prototype style work. The problems that can arise when transacting with cryptocurrency will be monitored and at the same time the benefits will be seen so that various benefits can be arranged for the customers through crypto in the future.
The other banks that are present, including the Central Bank, are Bangkok Bank, Krungthai Bank, Bank of Ayudh, Kashi Karnak Bank, Siam Commercial Bank, Thanachart Bank, Standard Chartered Bank Thai and HSBC. R-3, a blockchain company based in New York, USA, has been commissioned to build the entire system. Their main task will be to create a blockchain-based process so that the entire transaction process can be controlled from the center. This means that decentralization systems, like other cryptocurrency systems, will not exist here, as Ethereum does.
In the meantime, the company has developed a very efficient system with which digital ledgers or lasers can be easily distributed in any situation. As a result, the central bank maintains control over transactions with crypto forever. The name of this laser made by R-3 is Corda. This cordi will be used in Thai banks.
Now the question is- why did Thailand decide to use crypto? The answer is to keep up with technology and prepare for the future. The economic and computer technologies of the 21st century have revolutionized the world economy. People's economic behavior has changed. People have used technology for financial transactions. This is because of the fact that time is wasted on such transactions as a result of technology. Since technology has a huge impact on human socio-economic management and the western world is embracing this new technology like cryptocurrency, why is Thailand lagging behind? And since it has been proven that there are many benefits to using crypto and people are willing to use it, there is a risk of falling behind in the future if you do not work with it.
Besides, there may come a day when you have to trade with foreign countries with this crypto. If a country is already unable to figure out what the pitfalls of using cryptocurrencies in its own country are and what the solutions will be, in many cases they will fall behind. So Thailand has assumed that the world of the future will be a fully digital and cashless economy. That means there will be no value of paper money. It will be completely digital through virtual system.
Not only Thailand, but several other Asian countries, such as Singapore, the Economic Advisory Council of Hong Kong and their central government are preparing to transact with cryptocurrency under the supervision of the central bank. Singapore has already put some amount of work ahead. They have done some policy work to use and popularize cryptocurrency in their country. They have set up a model where the rules for using crypto have been worked out. Thailand will work on models made in Singapore. Many countries are working on similar models made in China, but the way to use Singapore-made crypto is much more modern and efficient.
Thailand is now working on rules for using crypto. Crypto will be used in some cases, transactions can be done directly through crypto in some places, security in the case of transactions of common people, etc. are being worked on now. Crypto-trading companies from around the world have already arrived in Thailand after announcing that they will use cryptocurrency centrally. Among them Bitcoin Company Limited, BitCub Online Company Limited, Cash to Coin Company, Coin Asset etc. are some of them. They have shown interest in their business investment in Thailand.
Bangladesh can also use crypto transaction technology if it wants. Bangladesh Bank must have control over the entire transaction process. In some cases, Bangladesh may grant permission to conduct international or local transactions through crypto. In this way, our country will go a long way towards becoming a digital Bangladesh. Besides, if such technology is created, people will be needed to control and maintain it. There is no doubt that creating such a technology will create a skilled population.
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