'Use of cryptocurrencies as medium of exchange a threat to the baht'

Finance Minister Arkhom Termpittayapaisith’s response came a day after the Securities Exchange Commission announced its new regulation to ban the use of digital assets and cryptocurrencies to pay for goods and services.

Arkhom said cryptocurrencies cannot be used as a means of payment because Thailand already has its currency system and several countries do not accept cryptocurrencies as a means of payment.

“It concerns the stability of the existing currencies. It may affect Thailand’s and the world’s currencies,” Arkhom said.

The minister said the SEC had earlier monitored the use of cryptocurrencies for money laundering. He said a firm has been closed for transferring cryptocurrencies of its clients out of the country before the SEC detected the practice.

“This is an important matter and several countries are also preventing the use of cryptocurrencies for money laundering. We’re supervising cryptocurrencies not because we don’t want the trade to happen but because we want to see security and stability of the system,” Arkhom added.

Rung Mallikamas, an assistant governor at the BOT’s Financial Institution Policies Division, said only the Thai currency system should be used as a means of payment in the country because Thailand already has a stable currency.

She added that the central bank did not want to see the use of cryptocurrencies to stimulate unnecessary spendings.