Bank of Thailand Warns Against the Use of Digital Currencies Payments

The Bank of Thailand (BOT) warned against using digital currencies in serving as payments for goods and services in the country.

Per a press release shared by the apex financial institution Thursday, Ms Siritida Panomwon Na Ayudhya, Assistant Governor of Payment Systems Policy and Financial Technology Group, said the bank has been monitoring the growing embrace of nascent assets like Bitcoin (BTC), Ethereum (ETH) for e-commerce, a development the bank frowns at.

Siritida reiterated that virtual currencies are not legal tender in Thailand. Their use can predispose the receiver of the cryptocurrencies to certain risks, ranging from price volatility to cyber theft and money laundering, amongst others. 

“Some digital assets are investment instruments, of which investors must understand the risks of holding. The BOT does not support the usage of digital assets as a means of payment for goods and services, a view that is consistent with many international organizations and regulators such as the International Monetary Fund (IMF),” the BOT press release reads.

The BOT also highlighted that it is set to take measures in conjunction with the Securities and Exchange Commission (SEC) to ensure that cryptocurrencies do not pose risks to consumers, businesses, and the entire financial ecosystem. One of the ways the bank hopes to achieve this is by intensifying its Central Bank Digital Currency (CBDC) pursuit and making allowance for the use of innovative and regulated stablecoins.

Besides Thailand, China is also known to maintain a rigorous stance on digital currencies. While other nations maintain a verbal warning against crypto, Chinese authorities are currently enforcing an encompassing ban on Bitcoin and altcoin mining, as well as other trading activities.  

The struggle of digital currencies amongst regulators is still commonplace nowadays. However, with the embrace of institutional and retail investors, many industry veterans believe the time of crypto has come.