The Bank of Thailand has issued a stern warning against a privately issued stablecoin THT pegged to the national currency, the Thai Baht.
March 18, 2021 | AtoZ Markets – The Central bank of Thailand has issued a warning to citizens and traders that the Thai Baht Digital (THT) stablecoin pegged to the Thai baht is “illegal.”
According to a Bangkok Post report on March 18, the regulator stressed that the company that issued THT has no connection with the Thai authorities.
Therefore, Thai laws will fail to protect consumers from fraud. Pruettipong Srimachand, Assistant Manager of the Legal Group of the Central Bank of Thailand, said that not only issuing but also using THT is illegal in Thailand:
“It is a violation of the 1958 Currency Act to create, issue and use or circulate any token as money. Such use will certainly affect the confidence of citizens in the stability of the national currency system, and this is the cornerstone of any economic activity.”
Srimachand noted that although THT is not used as a medium of exchange, it could cause fragmentation of Thailand’s monetary system if it competes with the local currency. The stablecoin was released on the Terra platform developed by the Korean company Terraform Labs.
In addition to THT, stable cryptocurrencies TerraUSD and TerraKRW circulate on the platform, which are used in the Chai payment application, which is quite popular in Asia.
As a reminder, Thailand has been developing a platform for trading digital assets for several years, but in January it became known that the platform would not support cryptocurrencies.
Think we missed something? Let us know in the comment section below.