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.

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

Banking

APAC corporates likely to improve in 2021

Moody’s Investors Service says in a new report that credit conditions in APAC will improve in 2021, supported by the gradual recovery of economic activity given the early containment of the pandemic in several Asian economies.

Pr News

Published

on

By

Ongoing fiscal and monetary support in both advanced and emerging markets will also aid improving conditions, but renewed lockdowns in parts of the world have stalled the nascent global economic recovery and create uncertainty around improving credit conditions.

(more…)
Continue Reading

Banking

Can Fintech drive a strong post-COVID-19 recovery in Asia?

The pandemic has highlighted the power of digital technology. Now is the time to harness this power for inclusive growth so that communities, especially in poor and remote areas, can survive the crisis and thrive.

Asian Development Bank

Published

on

To say 2020 has been a challenging year is a massive understatement. The COVID-19 pandemic has quickly undermined development gains from recent decades and slowed growth in many Asian economies.

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

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

Join 13,608 other subscribers

Trending