Bank of Thailand flags risks in banks’ trading of digital assets

The Bank of Thailand does not welcome local financial institutions engaging in trading operations with cryptocurrencies due to their inherent volatility. This was stated by Chaiwadi Chai-Anant, Senior Director of Corporate Communications at the Bank of Thailand, according to Bangkok Post.

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«Banks [are responsible] for customers’ deposits», — she explained.

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Besides the high volatility, Chai-Anant highlighted cyber threats, data breaches and money laundering as risks.

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«If digital assets become widely adopted, this will affect the stability of the payment system, financial stability and consumer protection», — she explained.

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Prior to Chai-Anant, Sakkapop Panyanukul, director of the Economics and Policy Department, spoke in a similar vein. He described cryptocurrencies as «empty coins» and warned against their use as a means of payment.

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In November, the country’s oldest lender Siam Commercial Bank {AOPEN_1}acquired 51% of the Bitkub cryptocurrency exchange{ACLOSE_1}. Earlier, its rival, Zipmex, {AOPEN_2}raised $41 million{ACLOSE_2} from Bank of Ayudhya, the fifth-largest by assets.

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As reported in Thailand, authorities {AOPEN_3}are considering{ACLOSE_3} the launch of the TAT Coin utility token to develop ‘cryptotourism’.

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Earlier, the agency floated the idea {AOPEN_4}of attracting wealthy Bitcoin holders to the country{ACLOSE_4} as high-income tourists.

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