Connect with us

Banking

Thailand prepares for cryptocurrency challenges

Thailand is moving toward a cashless society. Bank notes and coins are set to become obsolete while transactions via electronic payments have increased over recent years.

Avatar

Published

on

The plan to launch a new currency next year is ambitious and controversial, as Libra is scrutinized by central banks around the globe, including the US Federal Reserve.

Loading...

The cryptocurrency concept is not far-fetched, as evidenced by the success of Bitcoin. It is a result of an evolving monetary system, which is moving toward digital payment systems backed by blockchain technology.

Thailand is moving toward a cashless society. Bank notes and coins are set to become obsolete while transactions via electronic payments have increased over recent years.

Thai reaction

This week, Facebook’s executives are scheduled to testify before the US Congress about the Libra project, while Thailand’s financial regulatory bodies are also working to get ready for Libra.

The Bank of Thailand has set up a special team to study Facebook’s “stable coin” and its 12-page white paper, while scheduling a meeting with Facebook in Thailand to get more details about the project.

At present, there is no Thai law with direct jurisdiction over cryptocurrencies or Libra. The closest one may be the Royal Decree on Digital Asset Business B.E.2561 (2018), which brings digital assets and operations of crypto exchanges and intermediaries under the purview of the Securities and Exchange Commission (SEC).

The current digital asset degree may not have direct authority over cryptocurrency, but it has jurisdiction over digital token investment and intermediaries involved in the exchange of crypto assets in Thailand.

The SEC’s senior officials said they are working with the central bank to determine the implications of Libra.

The introduction of the new cryptocurrency will impact banking operations, especially cross-border money transfers. If the Libra Association can form a global network to accept the new currency, it can offer money transfer services without intermediaries and at a lower cost.

Thailand offers the possibility of mass adoption of the new currency because the country has around 50 million registered Facebook users.

Commercial banks in Thailand are also studying the details of Libra, fearing that they may fail keep up with the latest developments.

Source link

Comments

Asean

12 Things to Know about the ASEAN Catalytic Green Finance Facility (ACGF)

The ACGF is an ASEAN Infrastructure Fund initiative managed by ADB’s Southeast Asia Department Innovation Hub. It helps Southeast Asian governments prepare and finance infrastructure projects promoting environmental sustainability and contributing to climate change goals.

Asian Development Bank

Published

on

Southeast Asia faces an infrastructure investment shortfall of more than $100 billion a year, which may have worsened amid the COVID-19 pandemic.

Loading...
(more…)

Continue Reading

Banking

Thai cabinet approves 350 billion baht Aid for COVID-hit Businesses

Thailand unveiled new measures to help small and medium COVID-hit businesses in the tourism industry hit by a liquidity crunch.

Olivier Languepin

Published

on

The Thai cabinet has approved assistance worth 350 billion baht($11 Billion) to help businesses affected by COVID-19 with soft loans and asset warehousing.

Loading...
(more…)

Continue Reading

Banking

APAC Banks to Face Portfolio Valuation Losses As Yields Rise

The latest data suggest that Fitch-rated banks in Hong Kong, India, Indonesia, Malaysia and Taiwan have the largest AFS securities portfolios, and display particular sensitivity to changes in yields.

Avatar

Published

on

Fitch Ratings-Hong Kong/Singapore-21 March 2021: A rise in yields for long-dated sovereign bonds will result in near-term losses for Asia-Pacific (APAC) banks as they recognise valuation changes on their available-for-sale (AFS) bond portfolios, but the capital impact should be manageable for most rated banks, says Fitch Ratings.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,974 other subscribers

Latest

Trending