The Central Bank of Thailand will work with other government agencies to create a framework for the adoption of crypto in the payment system.
Thailand is a crypto-friendly country with better rules and regulations on this industry. There are few commercial banks and multiple blockchain companies, which are working on development works in the crypto and blockchain industry, so that the country can use blockchain technology in the most perfect ways.
A joint press release by the official government authorities of Thailand confirmed that the country is confident with its existing potential to handle crypto technology.
On 25 January, through the press release, The Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) stated that now in this situation it is necessary to bring rules and regulations to use the Cryptocurrencies in the payment systems. However, joint discussion noted that huge level adoption of the crypto-based payment system may result in financial stability risks.
The governor of the Bank of Thailand, Sethaput Suthiwartnarueput, stated:
At present, the widespread adoption of digital assets as a means of payment for goods and services poses risk to the country’s economic and financial system. “
The three main risks noted by the authorities were volatility, IT risk, and compliance-based risk.
The pressure release noted that volatility in the price of crypto assets is the biggest headache and further transaction fees will result in more burden to use Crypto in the payment system. And in the IT risk, agencies noted that there are chances that systems ( blockchain networks and systems used in the payment systems) may face technical failure and that can cause loss for the users.
On the compliance-based issues, Agencies noted that there is a very big issue because of the anonymous nature of the Digital assets and these may result in a legality risk under the anonymity of the transactions.