Connect with us

Thailand

Bank of Thailand wrestles with cryptocurrency adoption

Neill Fronde

Published

 on 

The Bank of Thailand is wrestling with cryptocurrency – how to adopt its usage and how to regulate it in the face of growing popularity, along with all the dynamics surrounding the new ‘currencies’.. The BOT admits they’re struggling with balancing the innovation in the financial world and protecting investors in a volatile and unstable market. Digital currency fluctuates much more widely than national currencies. Last year the BOT launched a prototype scheme for digital currency as Thailand has tried to attract cryptocurrency tourism. And failed.

Cryptocurrency can be viewed in 2 categories – ones stablised by backing with assets, often called stablecoin, and ones without stable assets backing them, such as the most popular cryptocurrency Bitcoin. Stablecoin can then be fiat-backed, asset-backed or algorithmic. Some stablecoin can be further stabilised by being backed by a national currency, like a cryptocurrency being backed by Thai baht.

Cryptocurrency carries many advantages over traditional currency, especially in an increasingly global market. Fundraising, investing, transferring money and digital purchases are all simplified by crypto, and the BOT believes further digital innovation is inevitable.

The drawbacks of crypto, aside from its famous volatility, are that cryptocurrency aren’t legal tender and the issuers credibility, or lack thereof, may destabilise any financial system tied to crypto. Cybersecurity and consumer protection issues, as well as the ease of money laundering and illegal transactions are other negatives to crypto. Aware of these issues, the BOT requires consultation for any stablecoin before beginning operations.

Cryptocurrency is growing in popularity globally, but not every country is prepared or welcoming. China and Indonesia have limited the trade and use for payment of cryptocurrencies. Japan, Singapore and the UK move forward more cautiously, with monitoring, investor protection, and strong anti-laundering policy.

Meanwhile, the Indian government is to propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, according to Reuters. The bill represents one of the world’s strictest policies against cryptocurrencies, penalising possession, issuance, mining, trading and transferring crypto-assets.

That decision comes days after Tesla head Elon Musk announced that the car and tech will now accept Bitcoin as a mode of payment.

“You can now buy a Tesla with Bitcoin,” Musk said in a tweet. Tesla is the first major automaker accepting payments in bitcoin in exchange for its products.

Now, the Bank of Thailand is cautiously looking to launch a cryptocurrency in the near future, weighing the risk against the growing call to embrace new financial innovation. Bitcoin started 2021 at US$29,000 and has skyrocketed, hovering in the US$50-60,000 range.

SOURCE: Thai PBS World

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

13 Comments

13 Comments

  1. Avatar

    Ian Jones

    Sunday, March 28, 2021 at 5:03 pm

    Since the government doesn’t understand cryptocurrencies and the potential risk of being a money laundering hub, let’s focus on better things than chasing another news headline.

    Make the Thai Bath weaker, that will benefit the tourism a lot, people from Europe will get more for their money and likely spend more (feeling rich) just like in the good old days, when hole of Scandinavia occupied all beaches in Phuket.

    It will also benefit Thai exports a lot.

  2. Avatar

    Glenn

    Sunday, March 28, 2021 at 6:07 pm

    ” and how to regulate it in the face of growing popularity ”

    and those few words are the kiss of death, the typical govt attitude towards everything.
    and, it also means ‘how can we get money from this?’

    while this article is about as simpleton as possible, at least it was publicized.

  3. Avatar

    Frank

    Sunday, March 28, 2021 at 6:27 pm

    Lol India bans everything even paypal western union etc. insane

  4. Avatar

    matt jones

    Sunday, March 28, 2021 at 10:40 pm

    Thailand doesn’t need to do anything it’s got regulated crypto exchanges which connect to Thai banks and provide great on/off ramps in to crypto. Things are working fine.

  5. Avatar

    toby andrews

    Sunday, March 28, 2021 at 11:00 pm

    Cripto currency cannot be regulated by Thailand.
    However this currency is not secure.
    It continues to be secure at present because it is profitable to be secure.
    If it suits the persons that runs this Cripto currency to corrupt the system, millions will be lost.
    I regard it as a Ponzi scheme.

  6. Avatar

    loller

    Sunday, March 28, 2021 at 11:47 pm

    lmao, it is so clear they have 0 understanding about cryptocurrency markets and segments. Cringe on a high level haha

  7. Avatar

    Issan John

    Monday, March 29, 2021 at 12:16 am

    “struggling”? – it’s absurd.

    Cryptocurrencies are designed to be unregulated – if regulated to prevent money laundering and backed by direct assets then, by definition, they’re not cryptocurrencies any more.

    It’s like trying to have dry water.

  8. Avatar

    intlbankster

    Monday, March 29, 2021 at 1:25 am

    Its kinda like asking horse breeders to figure out how to integrate automobiles and stay relevant.

    Crypto is the meteor heading into this dinosaur industry called banking that will be made extinct by crypto.

    There’s no if and or but. Its programmable money on the internet. It will win. Banks provide a rather analog walled garden of services, with none of the services offering freedom or privacy. They provide a product they control the supply of, and typically always increasing the supply as the answer to any and every problem.

    Crypto is digital freedom.

  9. Avatar

    Michael

    Monday, March 29, 2021 at 4:42 am

    @toby andrews – And with that comment, it shows you have absolutely no clue about what cryptocurrency is and its applications – Google is your friend before commenting

  10. Avatar

    EdwardV

    Monday, March 29, 2021 at 8:25 am

    We have a government getting into the weed business and also wanting to access the favorite monetary system of criminals. What could possibly go wrong?

  11. Avatar

    intlbankster

    Monday, March 29, 2021 at 10:53 am

    I never thought I would see the day where issanjohn is correct and TobyA is 100% wrong

  12. Avatar

    intlbankster

    Monday, March 29, 2021 at 10:58 am

    Where thethaiger when btc was at $10000. Oh right they were busy censoring me from telling you to buy. But now it’s at $55000 and were free to talk about it publicly. Lol

  13. Avatar

    toby andrews

    Wednesday, March 31, 2021 at 11:47 am

    I answered but again I am not posted.

You must be logged in to post a comment Login

Leave a Reply

Neill is a journalist from the United States with 10 years broadcasting experience and national news and magazine publications. He graduated with a degree in journalism and communications from the University of California and has been living in Thailand since 2014.

Follow Thaiger by email:

Thailand13 hours ago

Thailand News Today | Australian released from death row, Samui restaurant raided | September 20

News14 hours ago

Pathum Thani man allegedly lights building on fire, sticks around to laugh and smile

Thailand15 hours ago

Australian and American on Thai death row released from Thai death row, Supreme Court clears drug trafficking case

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

World16 hours ago

Insect snacks hit Japanese vending machines

Thailand16 hours ago

The Return of ‘THE TIM’ | Thaiger Bites | September 20

Coronavirus (Covid-19)17 hours ago

Monday Covid Update: 12,709 new cases; provincial totals

image
Join the conversation on the Thaiger Talk forums today!
Thailand17 hours ago

Pattaya laundry shop reports ladies’ underwear thief is on the loose

World18 hours ago

Hanoi to ease Covid restrictions this week

Thailand18 hours ago

Morning Top Stories | No approved October re-opening, Phuket easing restrictions | September 20

Thailand19 hours ago

Government believes more suspects involved in theft from budget meant for the disabled

Thailand20 hours ago

Dual Pricing and Reduced tax on Alcohol | Good Morning Thailand | Episode 92

Thailand20 hours ago

Around 20 people arrested at Koh Samui restaurant for drinking alcohol, gambling, playing pool

Bangkok21 hours ago

Bangkok residents warned of flooding risk as torrential rain forecast this week

Thailand21 hours ago

Government seeks to regulate infectious waste disposal charges

World21 hours ago

Manny Pacquiao to run for president of the Philippines

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14 | Thaiger
Thailand7 days ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand7 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism7 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket7 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism7 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand7 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism7 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand8 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand8 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand8 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand8 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand8 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand8 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand8 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand8 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending