Tag: Bank Of Thailand

Bank of Thailand to Start Retail Test for its Retail CBDC

by Blockchain News

The Central Bank of Thailand also known as the Bank of Thailand (BOT) plans to begin the trial of its Central Bank Digital Currency (CBDC) in a retail setting.

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According to ​the Deputy Governor of the bank, Ms. Vachira Arromdee, Retail CBDC has the potential to be the foundation of future financial systems.

Based on this assumption, BOT considers it necessary to expand the scope of the Retail CBDC development beyond its present state to a pilot phase. During this pilot phase, there will be real-life applications of the Retail CBDC in real-time. The phase will be covered in collaboration with the private sector on a limited scale.

In the first place, many central banks are laying much emphasis on the development of Retail CBDC. Specifically, BOT is among the few who recognize the significance of CBDC as a recent financial tool. The Thailand central bank believes that CBDC can provide more opportunities for individuals and businesses including the general public.

The unending list of opportunities encompasses providing more enormous and convenient access to a series of financial services, invariably at a lower cost. 

Formerly, BOT took part in Wholesale CBDC projects as well as Proof-of-Concept Retail CBDC testing with corporates. Times are changing to accommodate more comprehensive Retail CBDC development. In light of this, the financial giant is gradually moving with the trend.

 

The Retail CBDC Pilot Study Tracks

 

With the intention of a pilot phase, there will be two tracks to its achievement. 

 

The first, is the Foundation track where an assessment will be carried out to ascertain the safety and efficiency of the system. Its technological design will also be examined in this track. Particularly, trading activities like paying for goods and services with CBDC will be conducted.

Next, the Innovation track will target the programmability. This will facilitate the development of innovative use cases for CBDC.

With this track, BOT will develop a design of CBDC that will fit perfectly into its future context. A CBDC Hackathon will take place welcoming both the private and public sectors to participate, so long they apply from 5 August to 12 September 2022.

Additionally, the pilot study will only involve a selected few, therefore, the public is advised to be cautious of fraudsters who might claim to be involved in the process.

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Thailand’s Market Watchdogs Suggest Crypto Regulation to Avoid Threatening Financial Stability

by Blockchain News

With the year newly shaping up, more regulators are beginning to explore avenues to regulate the digital currency ecosystem. Accordingly, Thailand’s top regulators have issued a statement to regulate cryptocurrencies as a means of payment.

Stumping Competition with National Fiat

The trio of the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) issued a joint statement noting that certain digital assets are fast growing as a means of payment in the country. 

Based on this designation, the regulators said they have chosen to regulate the assets such that they will not pose threats to the financial and economic stability being enjoyed by the nation.

Sethaput Suthiwartnarueput, Governor of the BOT said:

“The BOT takes into consideration both the risks and benefits of digital assets, including the underpinning technologies. 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. Therefore, clear supervision of such activity is needed.”

The authorities said while there will be an issued framework guiding assets deemed risky, there will also be a broad provision for those that pose no threat to the country’s financial ecosystem. The plans to issue the regulations will come after adequate consultation has been made with relevant stakeholders and members of the public, all of which will be factored in by the regulators.

“However, technologies and digital assets that do not pose such risks should be supported with appropriate regulatory frameworks to drive innovation and further benefit for the public,”  Suthiwartnarueput added.

Patting Blockchain Innovations on the Back

Thailand is one of the nations whose positivity toward digital currencies is well documented. Despite the plans to crack down on cryptocurrencies, the country remains amongst the pioneers of blockchain-backed electronic letters of guarantee and virtual Visas amongst others. With the flexibility of the regulators, whatever path that will be trailed by the company will not be as damning as those chosen by China and other nations that banned cryptocurrencies outrightly from their shores.

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Thailand’s Market Watchdogs Suggest to Regulate Crypto, Avoid Threatening from Financial Stability

by Blockchain News

With the year newly shaping up, more regulators are beginning to explore avenues to regulate the digital currency ecosystem. Accordingly, Thailand’s top regulators have issued a statement to regulate cryptocurrencies as a means of payment.

Stumping Competition with National Fiat

The trio of the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) issued a joint statement noting that certain digital assets are fast growing as a means of payment in the country. 

Based on this designation, the regulators said they have chosen to regulate the assets such that they will not pose threats to the financial and economic stability being enjoyed by the nation.

Sethaput Suthiwartnarueput, Governor of the BOT said:

“The BOT takes into consideration both the risks and benefits of digital assets, including the underpinning technologies. 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. Therefore, clear supervision of such activity is needed.”

The authorities said while there will be an issued framework guiding assets deemed risky, there will also be a broad provision for those that pose no threat to the country’s financial ecosystem. The plans to issue the regulations will come after adequate consultation has been made with relevant stakeholders and members of the public, all of which will be factored in by the regulators.

“However, technologies and digital assets that do not pose such risks should be supported with appropriate regulatory frameworks to drive innovation and further benefit for the public,”  Suthiwartnarueput added.

Patting Blockchain Innovations on the Back

Thailand is one of the nations whose positivity toward digital currencies is well documented. Despite the plans to crack down on cryptocurrencies, the country remains amongst the pioneers of blockchain-backed electronic letters of guarantee and virtual Visas amongst others. With the flexibility of the regulators, whatever path that will be trailed by the company will not be as damning as those chosen by China and other nations that banned cryptocurrencies outrightly from their shores.

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Bank of Thailand Warns Against the Use of Digital Currencies Payments

by Blockchain News

The Bank of Thailand (BOT) warned against using digital currencies in serving as payments for goods and services in the country.

Per a press release shared by the apex financial institution Thursday, Ms Siritida Panomwon Na Ayudhya, Assistant Governor of Payment Systems Policy and Financial Technology Group, said the bank has been monitoring the growing embrace of nascent assets like Bitcoin (BTC), Ethereum (ETH) for e-commerce, a development the bank frowns at.

Siritida reiterated that virtual currencies are not legal tender in Thailand. Their use can predispose the receiver of the cryptocurrencies to certain risks, ranging from price volatility to cyber theft and money laundering, amongst others. 

“Some digital assets are investment instruments, of which investors must understand the risks of holding. The BOT does not support the usage of digital assets as a means of payment for goods and services, a view that is consistent with many international organizations and regulators such as the International Monetary Fund (IMF),” the BOT press release reads.

The BOT also highlighted that it is set to take measures in conjunction with the Securities and Exchange Commission (SEC) to ensure that cryptocurrencies do not pose risks to consumers, businesses, and the entire financial ecosystem. One of the ways the bank hopes to achieve this is by intensifying its Central Bank Digital Currency (CBDC) pursuit and making allowance for the use of innovative and regulated stablecoins.

Besides Thailand, China is also known to maintain a rigorous stance on digital currencies. While other nations maintain a verbal warning against crypto, Chinese authorities are currently enforcing an encompassing ban on Bitcoin and altcoin mining, as well as other trading activities.  

The struggle of digital currencies amongst regulators is still commonplace nowadays. However, with the embrace of institutional and retail investors, many industry veterans believe the time of crypto has come.

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Bank of Thailand Set to Regulate Stablecoins, Says Bank Official

by Btcmanager

The Bank of Thailand (BOT) is set to draft regulations on stablecoins by the end of 2021. This comes following growing criticism from financial regulations regarding unlicensed stablecoins issued by private companies. 

Thailand Consulting With Stakeholders on Stablecoins Regulation

This latest development was revealed by the Central Bank’s assistant governor, Siritida Panomwon Na Ayudhya on Friday. Siritida said in a briefing that the apex bank was in talks with market regulators and participants before concluding stablecoin regulations. 

She also stated that the regulations would be comprehensive and cover all types of stablecoins that are not illegal. The Bank of Thailand (BOT) will regulate foreign currency-backed stablecoins, asset-backed stablecoins, and algorithmic stablecoins that are not illegal. 

The central bank chief also noted that the regulations will not cover crypto-assets that are not backed by real assets. ”The rules will not cover those without asset backing, such as Bitcoin or Ethereum and investors will have to take their own risks”. She added. 

Issuers of baht-backed stablecoins will be required to get a central bank license to be classified as electronic money. The central bank will also oversee risks associated with e-money which includes money laundering and illegal funding.  This latest development comes after the apex warned against a new baht-denominated stablecoin THT. BOT stated that the stablecoin could expose users to cyber theft and money laundering.

BOT Exploring Central Bank Digital Currency

Siritida also confirmed that the latest policy on stablecoins puts Thailand in the same category with countries like Singapore and Japan. She also confirmed that the bank explored the benefits of digital currencies in fintech and was eager to deploy innovations. 

It is currently in the process of developing a retail central bank digital currency. The BOT will continue monitoring developments of new technologies and adopt policies that support the economy and can maintain financial system stability, she added. 

Regulations of cryptocurrencies have dominated the financial space in Thailand in recent months. The Thai SEC caused a stir in February when it drafted a proposed regulation for cryptocurrencies that caused significant controversy. The draft proposal had stipulated that new crypto investors must possess an annual income of 1 million baht. 

The Thai crypto community rejected the proposal as it essentially cuts off retail investors from accessing cryptocurrencies in the country. Although the SEC later retracted its initial stance, stating that it was part of the consultation phase. It has not stopped the perception that the Thai government wants to pass strict crypto regulatory laws. 

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