Move to ban cryptocurrency payments aimed at safeguarding financial stability
A move by the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC) and the Finance Ministry to ban the use of cryptocurrencies for purchasing products and services is aimed at preventing negative impacts on financial stability and the economy.
The action comes as digital asset business operators have begun to facilitate retailers and entrepreneurs who are eager to use cryptocurrency to pay for products and services, thereby encouraging the public to use digital assets for payment apart from investment.
However, this places people at risk of price volatility and hence monetary loss, cyberattacks, personal information leakage or being used as tools for money laundering.
The ministry, BOT and the SEC said they would launch guidelines related to digital assets based on the country’s financial system and customers’ interests.
BOT Governor Sethaput Suthiwartnarueput said clear and appropriate guidelines related to digital assets are necessary to ensure that innovations benefit people.
SEC secretary-general Ruenvadee Suwanmongkol said the commission had launched hearings on regulations governing the use of digital assets for product and service payment.
Cryptocurrency is one of the digital assets on blockchain that was made for trading goods, services and other assets. Unlike fiat currencies, the price of cryptocurrencies can fluctuate depending on market mechanisms and trading demand.
Most central banks have not accepted cryptocurrency for debt payment under laws, except in El Salvador.
However, many types of cryptocurrency, such as Bitcoin and Ethereum, are popular among people who believe this form of currency will play an increasingly important role in finance and investment.