BOT governor wars of crypto risk as govt prepares trial

FRIDAY, JANUARY 31, 2025
BOT governor wars of crypto risk as govt prepares trial

Bank of Thailand (BOT) governor Sethaput Suthiwartnarueput has warned that cryptocurrency carries a risk, even as the government prepares to trial its own crypto in Phuket.

Sethaput told Reuters on Thursday he was concerned about the Finance Ministry’s plan to launch a 10-billion-baht stablecoin sandbox, backed by government bonds, on the holiday island. The trial is expected to launch later this year as part of government plans to broaden public access to digital investments.

Digital currency lacks a stable value, the BOT governor said. Current crypto technology is not scalable, which can lead to fragmentation of the payment system, he added, underlining the central bank’s policy on digital currency.

He pointed out that the existing PromptPay digital payment platform was working well.

Finance Minister Pichai Chunhavajira said on Thursday that a central platform for secondary market trading is also being developed to facilitate easier buying and selling of the stablecoin, boosting market liquidity.

The new platform would be integrated with existing trading platforms to enhance connectivity, he added. The platforms may also be linked to retail businesses, allowing the stablecoin to be used for everyday purchases, he said.

Pichai said he was confident that the new stablecoin would not affect the baht's stability, as no new money would be created within the system.

 

Thailand Web Stat