Thailand's Central Bank to create its own cryptocurrency

[pepi2005]

Source: https://cointelegraph.com/news/thailand-s-central-bank-eyes-creating-its-own-digital-currency-for-interbank-settlements

The Bank of Thailand (BoT) is considering issuing its own cryptocurrency, the bank’s governor revealed in a speech June 5.

In his keynote on Thai economic development at Nomura Investment Forum Asia (NIFA) in Singapore, BoT governor Veerathai Santiprabhob spoke of a new project in which the central bank and other Thai banks join forces to develop a “new way of conducting interbank settlement” using a central bank-issued digital currency (CBDC).

According the bank, the adoption of its own cryptocurrency by the banking system would reduce the transaction and validation time as well as its costs “due to less intermediation process needed compared to the current systems.”

Santiprabhob noted that the bank is not prioritizing the adoption of CBDCs, but is focused on exploring the potential of the technology. The bank governor stressed that the financial institution is a “facilitator of innovation,” but is also a “regulator to safeguard financial stability”:

“Like other central banks, our goal is not to immediately bring CBDC into use, but rather to explore its potential and implications for back office operations.”

In addition to considering the issuance of CBDCs, Santiprabhob also talked about the benefits of the financial system adopting blockchain technology, claiming that banks are “working closely with the financial industry” to bring the technology to “various banking applications.”

Thailand’s central bank is the latest to consider the adoption of a CDBC. Last month, Norway’s Norges Bank issued a working paper in which it considered developing its own digital currency as a means to supplement cash and to “ensure confidence in money and the monetary system.” Riksbank of neighboring Sweden is also investigating the potential of an e-krona as a result of declining cash circulation.

Earlier today at his annual live Q&A session, Russia’s President Vladimir Putin claimed that neither Russia nor “any other country” can have its own cryptocurrency “by definition”, given crypto’s borderless nature.

[impulse]

What could possibly go wrong?

 

[davidst01]

On 6/8/2018 at 7:31 AM, impulse said:

What could possibly go wrong?

 

maybe they can call it dodgy coin

[Justfine]

Makes sense. All central banks will do it then bitcoin and co becomes worthless.

[phycokiller]

14 hours ago, Justfine said:

Makes sense. All central banks will do it then bitcoin and co becomes worthless.

other way round, all central banks will do it the the public will realize they can just use bitcoin instead

[Justfine]

28 minutes ago, phycokiller said:

other way round, all central banks will do it the the public will realize they can just use bitcoin instead

Wrong. Any gov can make it illegal.

[CanuckThai]

It gives me a warm and fuzzy feeling....confidence that select Thai officials have a seamless method to transfer funds to a memory stick, and scoot...

[pepi2005]

4 hours ago, Justfine said:

Wrong. Any gov can make it illegal.

the main point of and for Bitcoin, which you seem to have completely missed so far is, that Bitcoin can't be controlled. It's one of the very few decentralized cryptocurrencies and a wonderful hedge against the devaluation of infinitely printed Fiat currencies.

I am offering products and services against direct payments in Bitcoin in every country in the world (I am not living in TH by the way, but it makes no difference), and there is nothing anyone can do against that.

[pepi2005]

19 hours ago, Justfine said:

Makes sense. All central banks will do it then bitcoin and co becomes worthless.

you don't seem to understand how (true) cryptocurrencies work and what their purpose are.

 

Central banks can and will create cryptocurrencies - but they will be fake cryptocurrencies, as they are just electronic versions of their infinitely printable fiat currencies, with the difference that they can be controlled better than their paper versions.

 

So there will be government-issued 'fiat/fake cryptocurrencies' and 'real cryptocurrencies' like Bitcoin. Guess which one I will choose to protect the value of my savings? ?

 

Check out this video for a very interesting presentation recently held at the German BayernLB: 

( https://vimeo.com/272512178 )

 

[phycokiller]

4 hours ago, Justfine said:

Wrong. Any gov can make it illegal.

sure but they have no way to police it, and its too late anyway, singapore, japan, switzerland have already legalized it and others are following

[tank81]

Makes sense. All central banks will do it then bitcoin and co becomes worthless.

Why do you insist on talking about something you clearly have no clue about?


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

[impulse]

On 6/18/2018 at 3:04 PM, pepi2005 said:

So there will be government-issued 'fiat/fake cryptocurrencies' and 'real cryptocurrencies' like Bitcoin. Guess which one I will choose to protect the value of my savings?

 

The "real cryptocurrency" that's dropped in value by over 60% since its high, less than a year ago?  That doesn't sound like a very good investment strategy, much less a way to protect the value of my savings. 

 

But I'm an idiot when it comes to that kind of thing.  I never did understand Enron's business model, either.  For which I was scorned for years...

 

Cryptos will eventually have their place.  But until they remove their speculative nature and figure out a way to keep a few entities from gaming them for the masses, a digital currency it is not. 

 

[impulse]

On 6/18/2018 at 3:00 PM, pepi2005 said:

the main point of and for Bitcoin, which you seem to have completely missed so far is, that Bitcoin can't be controlled.

 

If, by "can't be controlled", you mean it can't be manipulated for the benefit of a few at the expense of many, you haven't been keeping up.   

 

[phycokiller]

15 hours ago, impulse said:

 

If, by "can't be controlled", you mean it can't be manipulated for the benefit of a few at the expense of many, you haven't been keeping up.   

 

keeping up with the conspiracy theories?

[impulse]

43 minutes ago, phycokiller said:

keeping up with the conspiracy theories?

 

They're still hypotheses under the strict scientific method- not even theories.   But there's enough smoke to suspect there may be a fire or 2 (or 20).

 

https://www.cnbc.com/2018/06/13/much-of-bitcoins-2017-boom-was-market-manipulation-researcher-says.html

 

https://www.bloomberg.com/news/articles/2018-05-24/bitcoin-manipulation-is-said-to-be-focus-of-u-s-criminal-probe

 

https://theconversation.com/bitcoin-price-manipulation-puts-trust-in-cryptocurrencies-at-risk-97842

 

https://theconversation.com/how-can-criminals-manipulate-cryptocurrency-markets-97294

 

https://www.forbes.com/sites/petertchir/2018/05/28/i-would-be-shocked-if-bitcoin-prices-werent-manipulated/#3e4226a82be9

 

Edit:  My point being that they may be great speculative investment vehicles, but not as a currency.  Too volatile to count on them being worth enough to pay my bills with them when those bills come due. 

 

Back to the OP, having the power of a stable government to stand behind their currency (crypto or otherwise) has worked quite well for centuries.  Bitcoin has been around just about as long as Enron, Tyco and Bernie Madoff lasted- on the order of years or decades.   The jury's still out.   It would take a real catastrophe to crash the GBP, USD or THB.   All it would take to crash the Bitcoin is a hacker.  To be fair, they're all vulnerable to market manipulation.

 

BTW, that's not to say that Thailand is the ideal government to back such a program...

 

[phycokiller]

2 hours ago, impulse said:

 

They're still hypotheses under the strict scientific method- not even theories.   But there's enough smoke to suspect there may be a fire or 2 (or 20).

 

https://www.cnbc.com/2018/06/13/much-of-bitcoins-2017-boom-was-market-manipulation-researcher-says.html

 

https://www.bloomberg.com/news/articles/2018-05-24/bitcoin-manipulation-is-said-to-be-focus-of-u-s-criminal-probe

 

https://theconversation.com/bitcoin-price-manipulation-puts-trust-in-cryptocurrencies-at-risk-97842

 

https://theconversation.com/how-can-criminals-manipulate-cryptocurrency-markets-97294

 

https://www.forbes.com/sites/petertchir/2018/05/28/i-would-be-shocked-if-bitcoin-prices-werent-manipulated/#3e4226a82be9

 

Edit:  My point being that they may be great speculative investment vehicles, but not as a currency.  Too volatile to count on them being worth enough to pay my bills with them when those bills come due. 

 

Back to the OP, having the power of a stable government to stand behind their currency (crypto or otherwise) has worked quite well for centuries.  Bitcoin has been around just about as long as Enron, Tyco and Bernie Madoff lasted- on the order of years or decades.   The jury's still out.   It would take a real catastrophe to crash the GBP, USD or THB.   All it would take to crash the Bitcoin is a hacker.  To be fair, they're all vulnerable to market manipulation.

 

BTW, that's not to say that Thailand is the ideal government to back such a program...

 

just looking at one of those articles, they claim bitcoin is manipulable because a large amount of bitcoin is owned by few people. thats really only a potential, the fact that we know that means those coins arent being used for manipulation. browsing those articles, theres no way the market will ever really be regulated altho no doubt some exchanges will be, but it looks to me that all those articles could be summed up by saying that there was a bubble and it burst, as would be expected. there are so many markets now and such a large market cap that I doubt individuals can manipulate it much. On the other hand the market cap is still very small compared to currencies like $ etc so the price is going to fluctuate for a while yet