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- The central bank announced on Thursday that it will collaborate with Thailand’s Securities and Exchange Commission to mitigate the risks that cryptocurrency payments represent to the country’s financial system if they become widespread
- The Bank of Thailand opposes the use of digital assets as a payment method for goods and services
- China, which is expected to be the first to do so, has proposed a set of rules to govern CBDCs in the future, including how to deal with their use, monitoring, and data exchange
Firms soliciting digital assets such as bitcoin (BTC, +0.73 percent) and ether (ETH, -3.24 percent) as payment for goods and services, according to the Bank of Thailand (BoT), are in for a rough ride. The central bank said on Thursday that it will work with Thailand’s Securities and Exchange Commission to reduce the dangers that crypto payments pose to the country’s financial system if they become popular.
The bank’s assistant governor of payment systems policy, Siritida Panomwon Na Ayudhya, said the BoT is constantly watching the growth of digital assets and emphasized that crypto is not legal money in Thailand. The Bank of Thailand does not support the use of digital assets as a means of payment for goods and services, the BoT said in a statement, echoing the views of many international organizations and regulators, including the International Monetary Fund (IMF), the Bank for International Settlements (BIS), and the central banks of England, the European Union, South Korea, and Malaysia.
Over one-third of retail crypto investors in the United Kingdom claimed their knowledge of the asset class was poor or non-existent in a poll conducted in May, during the height of the recent market run-up. Even after investing in cryptocurrency, one in five people stated they didn’t comprehend it. Oxford Risk, a financial services business, performed the poll, which discovered that FOMO drove a substantial share of investors. Many people were misled by media reports of large gains or word of mouth. Further innovation, according to the bank, is unavoidable since digital money makes activities like fundraising, investing, and money transfer much easier. However, the BOT is aware of the disadvantages, which include a greater vulnerability to cybersecurity and consumer protection problems, according to the article. As a result, before commencing any stablecoin operations, BOT demands consultation. The BOT is considering launching another digital token in the near future, according to the article, although there are still reservations about the dangers.
The debate over digital money is still continuing, with some institutions on the verge of launching a central bank digital currency (CBDC). China, which is likely to be the first to implement one, has suggested a set of regulations to regulate CBDCs in the future, including how to deal with their usage, as well as monitoring and data exchange. However, there is still opposition, with India preparing a measure to restrict private cryptocurrencies as it prepares to launch its own digital token. This bill is in keeping with the country’s declared objective of eliminating all other cryptocurrencies.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
