The Central Bank of Thailand alerted the local banks and businesses not to accept trading of payments in cryptocurrency. Meanwhile, the Thai tourism minister was saying that they are preparing to accept cryptocurrency. doubtlessly, the Thailand economy massively depends on the tourism business.
Why The Central Bank of Thailand Is Against The Cryptocurrency:
According to the Bangkok Post, the orders against trading of crypto assets have arrived at the time. When commercial banks have been making investments in the local crypto exchanges.
The Bank of Thailand (BoT) said that ” they are against the direct involvement of commercial banks in trading of cryptocurrency assets.”
“We don’t want banks to be directly involved in digital asset trading. Because banks are responsible for customer deposit and the public and there is a risk.”
However, in November, the oldest Thai bank, Siam commercial bank declared that they have purchased a 51% stake in the country’s biggest Crypto Exchange BitKub, by a recent report of Cointelegraph. Also, after august, the Zipmex crypto exchange has collected $1.3 billion in funding from the country’s fifth-largest lender, Bank of Ayudhya.
On 7th December, the senior director of Central Bank, Chayawadee Chaianant has made an order. Which was in reference, to the high risk of digital assets connected with the high price value volatility.
The bank of Thailand has strongly stood in opposition to the concept of accepting digital assets. Nevertheless, the trend of cryptocurrency is increasing rapidly amongst people, banks, and companies.
The Department Director Of Economic And Policy of The Central Bank Of Thailand:
Sakkapop Panyanukul has recently warned businesses not to accept cryptocurrency. He said that:
“If other Digital currencies are widely used, then it will affect the central bank’s ability in managing the country’s economy .”In reference to the tokens, he has tagged them as “blank coins”. That has no back by any assets.
Labelled As Volatile Currency By Authorities:
The central bank showed their concerns about using cryptocurrency as a medium of payment. According to the latest report, Chaywadee Chai Anant, the senior director of corporate and communication. Said that digital assets could be damaging to traders and consumers. Digital assets are linked with high price volatility and the high risks of cyberattacks. That ends up in personal data leakage and money laundering.
“If digital assets become widely used as a means of payment for goods and services. Such risks could affect payment system stability, financial stability, and consumer protection.”
The bank of Thailand runs the orders against crypto assets, after the announcement of the tourism governor about becoming a crypto-friendly country. You can check here the news of Thailand planning to adopt cryptocurrency.
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