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- The BoT has strictly instructed that anyone using stablecoin for transactions will be penalized from future
- The Bank has circulated a form to consider public views on the venture
A very strict stance has been taken by the Bank of Thailand, which concerns the use of Stablecoins in the country. Recently, in March, the Bank has strictly warned that it would start penalizing any use of stablecoins backed by Thai-Baht. With public opinion, the whole monetary body of Thailand, the Bank of Thailand for the development of CBDC, a Central Bank Digital Currency. Testing has been scheduled for 2022. In a recent press release which was published on Friday, the Bank of Thailand has revealed that it is seeking some very credible feedback from the public concerning the recent development venture of CBDC, which would be a retail venture, how it would be beneficial for public use and what are the public demands from the venture. These questions were laid down by the Assistant Governor of the Financial Markets Operations Group, Bank of Thailand, Ms. Vachira Arromdee.
Stablecoin is a risky platform
Altogether, a separate report was published with the announcement of Arromdee; along with it, the BoT also talked about the persistent risks in dealing with stablecoins in the country. It has been strictly mentioned that the transactions using stablecoins pose some severe threats to the ‘monetary sovereignty and financial stability.’ As per BoT’s proposal, a digital form of money will be issued by the CBDC, which could be smoothly and effectively used for any online or legal tender transactions. RAs per BoT, the most advantageous feature of CBDC is its portability and its innovative applications in dealing with all kinds of financial services. The primary necessity in this venture is to consult all the public and private stakeholders who have an important say in this step.
Importance of Public views
As per BoT’s outreach, the most important aim or focus of the retail CBDC is to provide uninterrupted and convenient financial services which will be secure and risk-free. The pros of retail CBDC are that it’s tech-based, which makes it more needful for the future; simultaneously, it proves to be more cost-effective with several other advantages like diversity and innovations in its use. The time constraint for the public commenters to drop in their views and concerns is June 15, 2021, and BoT has strictly mentioned that the public’s points will be strongly considered for making any other decisions with the venture.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
