Thailand to Regulate Stablecoins Sooner Than Bitcoin

Thailand’s central bank is moving towards bringing regulations for the so-called Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term as soon as this year, the Bank of Thailand’s Assistant Governor, Siritida Panomwon Na Ayudhya revealed on Friday.

“The central bank is receiving opinions from market regulators and participants before announcing regulations,” she said in a press briefing.

This came after the Thai monetary regulator warned against the usage of a baht-denominated stablecoin called Thai Baht Digital (THT).

Siritida stressed that the upcoming regulations will only cover stablecoins, and not digital currencies like Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, Ethereum or others. The purview of the framework will not only include Thai baht-backed stablecoins, but also such digital currencies backed by foreign currencies and other assets.

When the rules will come into effect, Baht-denominated stablecoins will be classified as electronic money (e-Money), and the issuers will need the central bank’s approval.

The Currency System Is under Threat

The Thai regulator first raised its concerns against stablecoins earlier this week while flagging THT, a Baht-denominated digital currency created outside the country. It highlighted that such stablecoins could ‘cause fragmentation to the Thai currency system’ and ‘replace, substitute or compete with Baht issued by the BOT’.

Though there might not be any popular Baht-denominated stablecoin currently in use, many crypto exchanges heavily rely on USD-backed stablecoins like Tether. These stablecoins help offshore exchanges to bypass regulations needed for service with fiats, providing a similar trading experience.

Furthermore, Siritida pointed out that the proposed regulations are similar to existing regulations that are already in place in Britain, Singapore and Japan.