The Governor of the Bank of Thailand Sethaput Suthiwartnarueput (left) said this week that the central bank will be publishing a discussion paper in January as it moves to regulate and rein in the use of cryptocurrencies which senior directors of the bank have repeatedly warned should not be used for payment and trading purposes within the Thai economy and which have become the subject of a new DeFi or decentralised financial environment for loan products in recent times. The move comes as more and more investors and members of the public in Thailand have jumped on the cryptocurrency bandwagon which the pioneering founder of Thailand’s largest and dominant cryptocurrency exchange Bitkub, Jirayut Srupsrisopa (right), has hailed as a ‘mega trend’ which offers new opportunities to create wealth from economic growth in the future.

 

by Joseph O' Connor

 

Thailand has seen explosive growth in the cryptocurrency sector since January, a process that has seen the country create its first billion-dollar startup or unicorn. Research conducted by Kasikorn Research Centre shows that over 50% of investors already have holdings in the new industry.

 

The same research shows that this is not an ordinary asset bubble driven by a desire to get rich quick but by enthusiastic people who see a need for change in the financial sector. In other words, cryptocurrency and the new financial environment that is quickly coming up around it including DeFi finance, represent a very real financial revolution. 

 

The Bank of Thailand confirmed this week that it would begin the process of introducing new regulations to govern the use of cryptocurrency in Thailand in January which will certainly prohibit the use of such digital assets to buy and sell goods and services. It comes as the volatile market for cryptocurrencies saw bitcoin fall from a peak in early November while holding its own this week.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2021/12/15/crypto-threat-to-thailand-financial-system/

 

-- © Copyright Thai Examiner 2021-12-16

 

- Whatever you're going through, the Samaritans are here for you

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

 

 

Interesting, I wonder if the new majority shareholder of Bitkub will offer any input into the process?

5 hours ago, webfact said:

The Bank of Thailand confirmed this week that it would begin the process of introducing new regulations to govern the use of cryptocurrency in Thailand in January which will certainly prohibit the use of such digital assets to buy and sell goods and services. It comes as the volatile market for cryptocurrencies saw bitcoin fall from a peak in early November while holding its own this week.

The banks don't like change or competition... especially when it means money is being moved out.

Central banks are scared to death of cryptocurrencies. They can't control their use because the whole point is that they're decentralised.

 

No doubt Thailand, like other countries have done already, will come out with their own "digital baht". This will be just a digital version of fiat currency, under the complete control of the central bank so they can print as much of it as they like. Unlike bitcoin, which has a limited supply and can't be created out of thin air.

 

 

5 hours ago, webfact said:

Research conducted by Kasikorn Research Centre shows that over 50% of investors already have holdings in the new industry.

 

The same research shows that this is not an ordinary asset bubble driven by a desire to get rich quick but by enthusiastic people who see a need for change in the financial sector.

I don't believe either of these things.

 

If they indeed found that "over 50% of investors" have crypto holdings, I suspect they're using a very narrow definition of "investor" that was chosen to lead to that result. (Later in the article it refers to "active investors", which again can mean almost anything.)

 

As for the idea that crypto buyers are focused on changing the financial system, that's just laughable. Yes, there is a small but vocal percentage of buyers who are true believers in upending the system and sticking it to the man, but the vast majority have bought for one reason only, which is that they saw prices going up and wanted to grab a piece of that action. Period.

"poses a real threat to Thailand’s financial stability"

The biggest threat to Thailand's financial stability is the military government that came to power illegally.

When Bitcoin was a Dollar they did not care when it was 10,000 they did not care, now it’s around 50,000 and they start to wonder how they can get there meat hooks into it. Heaven forbid the working class can make money, banks offer no interest so the punters are pulling there cash out and going to Alternative investments.  . 

The Thai Central bank has purchased more gold tonneage this year than any other nation. 

They see a very different future..

 

5 hours ago, roquefort said:

can't be created out of thin air.

 

I thought that's how it is done , with the help of a computer, or start

your own from thin air ....???? 

regards worgeordie

it's time to ban all cryptos for environmental and compliance reason, we can't let criminals use our energy resources to "launder" their dirty money

This crypto currency is just another pyramid scam. It's just like paper gold , it's only worth paper.

 

The investors who withdraw last will lose big money when everybody start to withdraw their money.

 

I wonder why Thailand approve it in the first place. 

Seeing as SiamBank just purchased bitkub this is interesting indeed... My take is that governments will not allow crypo to fully succeed as it endangers their sovereignty. It's just not in their best interest  (see China).

52 minutes ago, EricTh said:

This crypto currency is just another pyramid scam. It's just like paper gold , it's only worth paper.

 

The investors who withdraw last will lose big money when everybody start to withdraw their money.

 

I wonder why Thailand approve it in the first place. 

You need to do some more research!

Crypto doesn't require any form of permission in a global sense.

 

It can be restricted locally but that won't stop someone who wants some, nothing will.

 

On 12/16/2021 at 3:59 AM, webfact said:

uch digital assets to buy and sell goods and services

Guess they didn't get the memo on 'utility'.