Bank of Thailand officials say that the use of cryptocurrencies as a means of payment is not illegal. However, they added that users “must be able to accept the risks”, including price fluctuations.
Using cryptocurrencies to pay for goods and services is not illegal in Thailand
Sakkapop Panyanukul, senior director of the Bank of Thailand’s Monetary Policy Department (BOT), clarified the central bank’s stance on cryptocurrencies this week.
He explained that the Bank of Thailand is currently discussing how to regulate cryptocurrency with the Securities and Exchange Commission of Thailand (SEC), related agencies and interested parties. The bank aims to limit consumer risks associated with the use of cryptocurrencies for payments.
Noting that some people are already using cryptocurrencies to pay for goods and services in Thailand, the director emphasized:
It’s not illegal … but [users] You must be able to accept the risks.
The Thai central bank previously said that cryptocurrency is not legal tender in the country and its use as a medium of exchange “constitutes a barter between the owner of the digital asset and the provider of goods and services, where the payer and the receiver accept mutually all risks involved “.
The director went on to say that “if other currencies are used extensively, it will affect the central bank’s ability to oversee the economy.”
Another senior director of the Bank of Thailand, Chayawadee Chai-anant, explained that many central banks around the world share the same concern that cryptocurrencies put financial stability at risk. While expressing concerns regarding financial stability, he clarified:
Currently, the Bank of Thailand does not prohibit but is concerned about the use of digital assets for payments of goods and services due to the fluctuation of their prices.
Meanwhile, the Thai central bank said on Tuesday that it discourages commercial banks from directly engaging in crypto asset trading due to risks stemming from high price volatility. Chai-anant said at a press conference:
We don’t want banks to get directly involved in trading digital assets because banks are (responsible) for customer and public deposits and there is a risk.
However, he pointed out that “if a company is a shareholder, that is another problem.” Siam Commercial Bank (SCB), one of Thailand’s largest banks, announced last month that it is acquiring a 51% stake in a cryptocurrency exchange.
Cryptocurrency has been gaining popularity as a way to pay for goods and services in Thailand. In July, the Thai central bank issued a warning notice on the use of digital assets as a means of payment. In October, the country’s prime minister He warned investors about investing in cryptocurrencies, stating that they are volatile and highly speculative.
In November, tThe Tourism Authority of Thailand (TAT) revealed that it is working with the SEC and the central bank to make it easier and more convenient for visitors to spend cryptocurrencies in the country. “Cryptocurrencies are the future, so we must make Thailand a crypto-positive society to welcome this group of quality tourists,” said the TAT governor.
What do you think about the Bank of Thailand’s crypto stance? Let us know in the comment section.
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