The Bank of Thailand (BoT), the country’s central bank, has said that commercial banks should not be actively involved in crypto trading. Banks are accessible for consumers to deposit and preserve their money, according to Chayawadee Chai-anant, senior director of the BoT, but with cryptocurrencies, the constantly shifting market movement exposes investors to financial hazards. Because cryptocurrencies are uncontrolled and decentralized forms of online payment, they are frequently chastised by central banks throughout the world for posing a threat to their governments.
According to a CoinTelegraph analysis, “if digital assets become extensively utilised as a form of payment for goods and services, such vulnerabilities might undermine payment system stability, financial stability, and consumer protection.”
The Bank of Thailand’s slightly anti-crypto advice comes at a time when Thai commercial banks are investing in local cryptocurrency exchanges.
For example, in August, the Zipmex crypto exchange raised $1.3 billion (approximately Rs. 9,811 crores) in capital from the Bank of Ayudhya, Thailand’s fifth-largest lender.
Siam Commercial Bank (SCB), Thailand’s oldest bank, bought a majority 51 percent share in Bangkok-based cryptocurrency exchange Bitkub in November.
The central bank of Thailand is concerned about Thai banks’ participation in the cryptocurrency market.
Last Monday, Sakkapop Panyanukul, the BoT’s senior director, issued a warning to company owners about taking cryptocurrency payments. According to reports, the official stated that using other currencies as payment choices would impede the central bank’s capacity to supervise the economy.
According to a Bangkok Post story, the BoT is drafting recommendations to governing the crypto area in order to decrease the market’s dangers.
Meanwhile, Thailand’s crypto culture is thriving, with an estimated 3.6 million individuals owning cryptocurrency.
The Tourism Authority of Thailand (TAT) suggested the development of its own utility token, TAT Coin, earlier this year in order to lure crypto-rich tourists and strengthen the country’s economy. The coin has yet to be released.