Sakkapop Panyanukul is a senior director at Bank of Thailand’s Monetary Policy Department. He clarified this week the central bank’s position on cryptocurrency.
He said that the Bank of Thailand was currently discussing cryptocurrency regulation with the Thai Securities and Exchange Commission, related agencies and other stakeholders. The bank wants to reduce consumer risk associated with cryptocurrency payments.
The director noted that many people use crypto to pay for goods or services in Thailand.
Although it’s legal, [users] must accept the risks.
According to the Thai central bank, cryptocurrency is not legal tender and it cannot be used as a means of exchange.
The director stated that “if other currencies are widely used it will impact the central banks ability to supervise the economy.”
Chayawadee Chaianant, another senior bank director in Thailand, stated that crypto risks financial stability worldwide and many central banks around the world share her concern. She expressed concerns about financial stability but clarified:
The Bank of Thailand currently does not prohibit, but is concerned about the use of digital assets to pay for goods and services.
The Thai central bank stated Tuesday it discouraged commercial banks from directly trading in crypto assets because of the high volatility and risks involved. A news conference was held by Chai-anant.
Banks shouldn’t be involved in digital asset trades. They are responsible for customer deposits as well as the public, and there is risk.
She noted, however, that “if a company has a shareholder, that’s another issue.” Siam Commercial Bank (SCB), the largest bank in Thailand, last month announced that it was purchasing a 51% share in cryptocurrency exchange.
As a means to pay for goods or services in Thailand, cryptocurrency is gaining popularity. The Thai central bank issued a notice warning regarding the use digital assets as a payment method in July. The country’s prime Minister warned investors against investing in cryptocurrency, saying that they can be volatile and highly speculative.
The Tourism Authority of Thailand (TAT), revealed in November that it was working with the SEC, central bank and other institutions to make it easier for tourists to use cryptocurrencies to pay. stated that crypto is the future and Thailand must be a crypto-positive country to attract this group of high quality tourists.