Thailand's central bank asks commercial banks to avoid direct trading in cryptocurrencies

The regulator cites the risks associated with the high exchange rates volatility

25.12.2021 - 08:00

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What’s new? According to the Reuters report, the Central Bank of Thailand has said it does not want commercial banks to be directly involved in cryptocurrency trading. . The remarks by Chayawadee Chai-Anant, Senior Director of Corporate Communications at the Bank of Thailand (BOT), came amid the Thai lenders investing in the local cryptocurrency exchanges.

The Reuters report

What is Chayawadee talking about? Trading and use of cryptocurrencies have gained momentum in Thailand in the past year, with retailers and property developers accepting digital assets as payment.

“We do not 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,” said Chayawadee.

What is the situation with the exchanges? There are eight licensed cryptocurrency exchanges in Thailand. Data from the Securities and Exchange Commission showed that about 205 billion THB ($6,09 billion) worth of digital assets were traded in November.

“If other currencies are widely used, it will impact the central bank's ability to oversee the economy. For digital assets, we are not afraid of everything, but most worrying is blank coins,” said Sakkapop Panyanukul, BOT Director of the Monetary Policy Department, referring to cryptocurrencies that are not backed by monetary assets.

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