Southeast Asian country Thailand like most countries lately is embracing cryptocurrency as a growing number of companies prefer digital currencies like ether (ETH-USD) and bitcoin (BTC) as a method of payment. However, the country’s central bank may well appear to have concerns about such a move by these companies, as they have warned them of the risks of using crypto as a form of payment.
The Bank of Thailand (BOT) in a press release mentioned that you have to be careful when using digital assets as a means of payment for goods and services. The central bank’s public relations statement revealed that some companies across the country have started soliciting payments in cryptocurrencies like bitcoin and ether.
– Publicity –
With that in mind, the financial institution has maintained a firm stance on this matter, as the recently released public relations statement stated that digital assets are not considered legal tender. In addition, it was also stated that BOT does not support the idea of cryptocurrencies being used as a means of payment for goods and services. The institution went on to explain that this poses risks for buyers and sellers, including computer theft, money laundering and price volatility.
BOT x SEC team up
It was also mentioned in the press release that in the event that the use of crypto assets becomes widespread in the country, BOT will coordinate with Thailand’s Securities and Exchange Commission (SEC) and other agencies involved to take the measures necessary to ensure that these digital assets will not pose “significant risks” to both the general public and the country’s financial and economic system.
The Bank of Thailand has made it clear that it recognizes the importance of innovation and financial applications for improving payment systems, adding that it will continue to assure its employees that they are getting the maximum benefit. of these developments in the financial system. He then revealed that the BOT has a central bank digital currency (CBDC) which is currently in development. Along with this, there is the formation of policy guidelines to “regulate fiat coins or other forms of stablecoins to provide more reliable digital payment channels” to their people.
Thai government and crypto
Thailand has this penchant for issuing policies for various areas of the cryptocurrency industry. In early 2021, Thailand’s SEC proposed a decision requiring investors to invest at least one million baht ($ 30,696) in crypto. This aroused the ire of stakeholders in that country, as said proposal elicited only negative reactions from them. They (stakeholders) believe the proposed policy would exclude both middle and low incomes from the cryptocurrency market, BTC Manager noted. The agency then clarified all this by stating that the intention to apply the aforementioned qualifications set out in the proposal was not there … yet.
Last month, the SEC drafted a new ruling to ban trading of meme tokens, fan tokens, exchange tokens and non-fungible tokens on local exchanges in Thailand. It is said that the agency’s decision “aims to clean up the local digital currency market and ensure consumer protection.”
This move can be seen as a positive one as it is pretty much obvious that the SEC is committed to ensuring that the public will only trade legitimate cryptocurrency projects rather than ban crypto trading itself.
In recent times, these so-called “crypto amulets” have swept the Thai cryptocurrency scene. The prices for these digital religious items run into the thousands if blessed by a popular and respected monk.