The central bank of Thailand reportedly urged local financial institutions to stay away from cryptocurrencies citing risks coming from their enhanced volatility. It added that the broad employment of bitcoin and the altcoins could also impact the Bank of Thailand’s ability to monitor the national economy.
According to a coverage by The Bangkok Post, the Bank of Thailand (BoT) does not want local banks to be directly involved in digital asset trading. Chayawadee Chai-Anant – Senior Director at the institution – opined that dealing with bitcoin and the alternative coins poses significant risks to the public since the assets are well-known for their price fluctuations:
“We don’t want banks to be directly involved in digital asset trading because banks are responsible for customer deposits and the public, and there is a risk.”
While the volatility in the space is indeed present, it is also worth noting that cryptocurrencies are relatively new assets. As such, many experts believe they could overcome the enhanced price swings in the upcoming future. For example, Google, Amazon, and Facebook also experienced volatility issues in their first years of existence but now stand as giants in their fields.
Last week, the Bank of Thailand addressed another warning. Back then, BoT’s Senior Director – Sakkapop Panyanukul – said that if cryptocurrencies are widely used, this could affect the central bank’s ability to oversee the country’s financial network. The exec added that the risks in the digital asset industry come from the fact that there are “blank coins,” which are not backed by other more secure assets.
Subsequently, BoT revealed it is currently collaborating with other agencies on ways to regulate the cryptocurrency industry.
At the end of last month, Jirayut Srupsrisopa – Founder and CEO of the cryptocurrency exchange Bitkub – urged Thailand’s authorities to start delving into the digital asset space. By doing so, the nation could multiply its GDP by six times, he opined.
The South-East Asian country is one of the most visited globally as its tourism sector was responsible for around 20% of the Gross Domestic Product before the pandemic. Moreover, many prefer to live in “The Land of Smiles” since it offers a tropical climate, sandy beaches, and a relatively low cost of living.
Keeping that in mind and the fact that the digital asset industry has created many people with significant financial capacity, Srupsrisopa advised the Tourism Authority of Thailand (TAT) to shift away from traditional marketing and attract some of those wealthy crypto investors.
Featured Image Courtesy of Thai PBS News