Thai Official Claims Facebook’s Libra Coin Could Face Issues Entering the Country’s Local Market
- The US House Financial Services Committee (FSC) believes that Facebook's Libra coin could have a major impact on the US Dollar upon its entry into the nation’s economy.
Owing to Thailand's existing financial framework, many of the country’s top economists are of the opinion that stablecoins such as Libra may have to face certain difficulties when trying to enter the local crypto market.
According to Sumaporn Manason — a Thai Fiscal Policy Officer — Facebook’s much-hyped crypto offering (Libra) might face a host of difficulties when it tries to enter the Thai economy because of its ambiguous legal status within the country. In regards to the issue, Manason argued that since Libra does not fall under the jurisdiction of any local Thai law, the stablecoin offering may be outright banned by the current regime.
Sumaporn then went on to say:
“The cryptocurrency does not fit under the Bank of Thailand's Currency Act because it does not have the characteristics of legal tender as stipulated by law. These characteristics refer to a banknote or coin having value in baht or being identifiable as an object or note used to pay debts or exchange with other currencies in accordance with the law.”
Sumaporn believes that Libra will either most likely be welcomed by local authorities or be regulated using a third party intermediary.
It is being widely reported that the Thai SEC is looking to issue its very own digital currency — so as to gain an edge over Libra.
Thailand is not the only country where Libra has sparked regulatory concerns. For example, earlier today, the ex-governor of the People’s Bank of China (PBoC) was quoted as saying that Chinese government should take active measures to prevent Libra from entering the nation’s economic engine.
The present PBoC deputy governor, Pan Gongsheng, recently referred to STOs as being “illegal financial entities” that should never be allowed to enter China’s economy.