Don’t use crypto for payments

The Bank of Thailand (BoT) claims that companies requesting “digital assets such as bitcoins and ether as payment for goods and services’ are fighting for a bruise.

The central bank said Thursday that it will coordinate with Thailand’s Securities and Exchange Commission to mitigate risks associated with the country’s financial system if crypto payments become mainstream.

Siritida Panomwon Na Ayudhya, Deputy Governor of the Bank’s Payment Systems Policy, mentionned The BoT continuously monitors the development of digital assets and has stressed that crypto is not legal tender in Thailand.

Related: Market wrap: Bitcoin sells as regulatory concerns resurface

“The BoT does not support the use of digital assets as a means of payment for goods and services, a view that is consistent with many international organizations and regulators such as the International Monetary Fund (IMF), the Bank international settlements (BIS) and the central banks of England, the European Union, South Korea and Malaysia, ”the BoT said in a declaration.

Ayudhya added:

“By using digital assets as a means of payment, both the payer and the recipient may face risks such as price volatility, computer theft and money laundering. “

The proclamation comes as BoT plans to pilot a retail central bank digital currency (CBDC) next year.

Related: Crypto has a marketing problem

Earlier this year, the BoT said it issue stablecoin settlements after warning against the “illegal” use of Terra’s baht-denominated stablecoin.

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