The Bank of Thailand (BOT) has insisted on a cryptocurrency ban for goods and services payments in Thailand, reasoning that it was not a suitable medium as there was already a current digital payment system (Promptpay).
BOT Governor Sethaput Suthiwartnarueput revealed yesterday, March 23rd, that the reason why the BOT considers cryptocurrency not suitable as a means of payment for goods and services in Thailand was that, saying that when considered with the BOT core, the digital currency, although innovative, could not meet Thai legal requirements of being a means of payment in the country.
He said: “The core belief of the Bank of Thailand which would not change was the presence of the government to maintain the value of money and the stability of the financial system. The current system (Promptpay) had been proven stable with high efficiency. But cryptocurrency, although innovative, was classified as a trend that does not meet the needs of being a medium for payment of goods and services.”
In early March, the Bank of Thailand and the Securities and Exchange Commission (SEC) had announced a usage limit of digital asset services for goods and services payments from April 1st onwards. The committee also issued announcements to prescribe rules for providing services for digital asset business operators.
Some of the announcement key points include no cryptocurrency promotion and advertisements to encourage the digital asset as a means of goods and services payments. Meanwhile, if customers were found to use cryptocurrency for such purposes, the operators should cancel the transaction and immediately notify the authorities.
The change does not affect trading or investing, only payments for goods and services in Thailand.
Follow us on Facebook