Thailand is taking a cautious approach when it comes to crypto-currencies. They are not entirely banning them, but they warn their citizens that the price fluctuations could result in their loss.
Bank of Thailand (BOT) Monetary Policy Department senior director Sakkapop Panyanukul explained the central bank’s view on cryptocurrency.
According to him, the Bank of Thailand and the Thai Securities and Exchange Commission (SEC) are now debating regulating cryptocurrencies. The bank aims to minimise the dangers to consumers who use cryptocurrencies to pay for goods and services.
Bitcoin and other cryptocurrencies are gaining popularity day by day in Thailand. The country does not have any official declaration on the use of cryptocurrency for payments but warns against the volatility in prices.
The Thai central bank has said that cryptocurrency is not legal tender in the country and that using it as a way to pay for goods and services is called barter trade, where both the buyer and the seller agree to take all the risks.
As a result of the widespread use of alternative currencies, the director said that the central bank’s capacity to monitor and regulate the economy would be weakened.
Chayawadee Chai-anant, another senior official at the Bank of Thailand, noted that many central banks globally share the same fear about crypto endangering financial stability.
The Bank of Thailand does not ban digital assets at this time, but the bank is concerned about how quickly their prices can change.she clarified.
According to a report published Tuesday by the Thai central bank, the central bank discourages commercial banks from being directly engaged in trading cryptocurrency assets because of the dangers associated with excessive price volatility.
Thailand is one of the Asian countries welcoming crypto-related businesses and transactions. Despite that, Thailand’s central bank warns the nation’s general public about using cryptocurrencies as a payment method. The central bank doesn’t want Thailand to fall victim to price fluctuations and doesn’t want the country to be subjected to any possible illegal use of cryptocurrencies.