Bank of Thailand Ordered to Relax Strict Rules and Study Bitcoin

Bank of Thailand Ordered to Relax Strict Rules and Study Bitcoin

The Bank of Thailand has been ordered by Thailand’s Deputy Prime Minister to look closer at bitcoin and relax its strict rules which hinder fintech innovation.

Also read: Revised Tax in Effect From Today In Japan, Giving Residents ‘Access to Global Markets’

Thai Central Bank Ordered to Study Bitcoin

The Thai Deputy Prime Minister Somkid Jatusripitak recently ordered the Bank of Thailand (BOT) to study if bitcoin is suitable as a legal method of payment in the country, according to several local newspapers. At the fintech event organized by the Matichon Group last month, he said the Ministry of Finance and the BOT must collaborate to support fintech, adding that (loosely translated):

The Bank of Thailand will have to relax its strict rules which hinder fintech. This will allow the bank to explore the possibilities of new innovations like Bitcoin to determine if Thailand should embrace it, how suitable it is for the country, how risky, how to prevent fraud, and to encourage entrepreneurs and financial institutions to get involved in fintech.

Bank of Thailand Ordered to Relax Strict Rules and Study Bitcoin“The BOT already knows what rules and regulations should be amended,” the deputy prime minister said. “Not everything is prohibited. Whatever is too much is not good, whatever is too little is also not good,” he argued.

While admitting Thailand cannot compete with financial centers such as Singapore, he hopes it could be a fintech leader among neighbors including Cambodia, Laos, Myanmar, and Vietnam.

Bank of Thailand Has Much to Consider

Bank of Thailand Ordered to Relax Strict Rules and Study Bitcoin
BOT Governor Veerathai Santiprabhob

In response to the Deputy Prime Minister’s order, the BOT governor, Veerathai Santiprabhob, said that there are many factors to consider in studying bitcoin. The bank will also determine if it could be used to pay off debts legally, according to the Nation TV.

The BOT governor reiterated that the bank has not adopted bitcoin as a legal currency or a method of payment like Japan has. He also noted concerns over its volatility as well as the lack of public understanding on the subject. The bank needs to carefully examine the development of bitcoin further to determine how useful it is, and weigh between its benefits and risks, he detailed.

The Thai Minister of Finance, Apisak Tantivorawong, believes that the BOT will be able to amend its rules appropriately, according to Khao Sod. He additionally suggested that Thailand should learn from other countries in determining if bitcoin is suitable for the Thai regulatory environment, taking into account the factors encountered by countries that use and do not use digital currencies. He suggested exploring how much to restrict and control bitcoin’s usage as well as how to prevent fraud and ponzi schemes, noting that these issues are all considered new in Thailand and must first be clearly defined.

What do you think the Bank of Thailand will do about bitcoin? Let us know in the comments section below.

Images courtesy of Shutterstock, Thai PBS, Bank of Thailand

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  • Ro Bot

    This is a promotion for Bitcoin who’s slowly sliding down the scale.
    Japan and Thailand are already using Ripple XRP technology which started last year.

    • Meethii

      The Power of Bitcoin is in trust and in that it is to function as just a currency.

      Money is just trust.
      Bitcoin can be trusted because of the ideology of a genuinely control-free money behind it. It frees people from the shackles of monetary enslavement.

      Many of the other cryptos might bring additional worth to some other aspect, but Bitcoin will be the USD of cryptos. which is to say that all other cryptos will be measured against their value in Bitcoins.

      USD and other forms of monetary control and abuse, via the banks are sliding down the scale.

      • Ro Bot

        I don’t know where you get that idea that Bitcoin can be trusted when its not. I think you need to do more DD.
        Clue-Wall Street turned down Bitcoin effort to open ETF because of the above reason.

        • Meethii

          If by trust, you refer to something validated by the wall street, I think we have very different definitions of trust.

          Just because people now trust debt as money, is because they do not understand/know that it is debt and how it works to enslave them.
          When those people, or majority of those people understand it, they will lose their trust in those debt-currencies.

          Bitcoin will help them to understand it, by functioning as a more just currency that is not created as debt.
          This will also increase peoples trust in it.

          Wall Street will naturally not validate anything that threatens to reduce its power as Masters of the Universe.

      • Ro Bot

        The power of bitcoin actually is NOT in trust but mere speculation. You need to do a lot of deep reading my friend

      • Ro Bot

        There is no TRUST in BTC and it’s price by speculation. there’s no governing fundamentals that’s why it’s very volatile my friend. I don’t know where you’re getting your information about BTC. you’re response is all crappy.