Bank of Thailand Warns Against Using Digital Assets as Payment for Goods and Services

The central bank of Thailand is currently busy with the development of a CBDC and is focused on forming policy guidelines to regulate stablecoins for more reliable digital payment channels.

The central bank of Thailand is now warning against using crypto assets as payment for goods and services due to the risks of volatility, cyber theft, and money laundering.

The Bank of Thailand (BoT) said it had made it clear that digital assets were not legal tender, it said in a statement on Thursday.

It further noted that recently some enterprises had been soliciting payments in digital assets for goods and services, adding the BOT has continuously monitored such developments.

“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.”

However, if the use of digital assets for payments become widespread, the BoT said it would coordinate with the Securities and Exchange Commission (SEC) and other related agencies to take the necessary measures to ensure that they don’t pose extensive risks to the general public or the economic and financial system.

It then says that the Bank of Thailand recognizes the importance of financial innovation and applications towards enhancing the efficiency of payment systems to support economic activities.

Meanwhile, it is developing a central bank digital currency (CBDC) and focused on forming policy guidelines to regulate fiat-backed or other forms of stablecoins for more reliable digital payment channels.

The BoT also said it is open to feedback from relevant stakeholders and the general public on the matter.

Last week, Thailand's financial watchdog also filed a criminal complaint against crypto exchange Binance for operating a digital assets business without a license, which it said is the start of a criminal procedure.

In the country, only licensed firms are allowed to provide services related to digital asset trading, said Thailand's Securities and Exchange Commission (SEC) in a statement adding, the offense carries a penalty of two to five years imprisonment and a fine of 200,000-500,000 baht ($6,200-15,500).

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