Thai central bank to regulate stablecoins

By the end of 2021, the Bank of Thailand plans to introduce rules on stablecoins, said the assistant to the bank’s head. Reuters reports.

“The central bank will gather views from market regulators and participants before announcing the rules,” said Sirithida Panomwon Na Ayudhya.

According to her, the Bank of Thailand (BOT) will regulate stablecoins backed by foreign currencies, assets, and also [simple_tooltip content=’coins whose price movement defines the algorithm, guiding their market supply’]algorithmic stablecoins[/simple_tooltip]. The rules will not apply to unsecured digital assets such as Bitcoin or Ethereum, the official said.

The BOT took this step after issuing a warning to investors about the risks associated with the baht-denominated stablecoin THT, issued by a foreign company.

The deputy governor noted that for the issuance of baht-backed stablecoins, regulator approval would be required, as such assets could be classified as electronic money.

The BOT official said the policy aligns with the guiding principles of countries such as the United Kingdom, Singapore and Japan.

The central bank sees the benefits of new financial technologies and is ready to implement innovations, she stressed. The BOT is currently developing its own retail CBDC, the regulator’s spokesperson added.

Earlier, for the second phase of the CBDC project with the Hong Kong Monetary Authority became the ConsenSys Ethereum Studio as a partner.

At this stage, to create a bridge for CBDC to them joined the People’s Bank of China and the Central Bank of the UAE.

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