Bank Of Thailand ‘Struggling’ With Cryptocurrency
The bank is concerned with how to adopt the usage of cryptocurrency and how to regulate it amidst the form’s burgeoning popularity.
In addition, BOT also admits that it doesn’t know how to approach the balance of the innovation in the financial world with the protection of investors in a volatile market, as digital currency tends to fluctuate far more than usual fiat currency.
And while BOT tried to launch its own prototype scheme for digital currency last year, that didn’t work out, the report says.
The bank does believe further innovation is inevitable, as digital money makes things like fundraising, investing and transferring money much simpler. But the BOT is also aware of the drawbacks, which the report says include a bigger susceptibility to cybersecurity and consumer protection issues. Because of this, BOT requires consultation before beginning operations involving any stablecoin.
The report notes that the BOT is looking at trying to launch another digital coin “in the near future,” but that there are still concerns regarding the risks.
The conversation around digital currency is ongoing, with some banks well on their ways to debuting a central bank digital currency (CBDC). China, which is expected to be the first country to roll one out, has proposed a set of rules to govern CBDCs in the future, including how to deal with the use of the coins along with monitoring and information sharing.
But meanwhile, there is still opposition, with a proposed bill in India prepared to ban private cryptocurrencies as it gets ready to debut its own digital coin. That bill is in line with the country’s stated goal of doing away with other cryptos.