11 July 2024

Volatility and security risks mean that Thailand’s Central Bank remains unconvinced about the use of digital assets to purchase goods and services, as many shops have started allowing payment using cryptocurrencies.

The Bank of Thailand’s Assistant Governor for Payment Systems Policy and Financial Technology, Siritida Panomwon Na Ayudhya, revealed that the central bank does not support the use of digital currencies for making payments, due to their high price volatility and the risks of cyber-theft, personal data leakage and money laundering, to which both customers and the businesses become vulnerable.

She also believes that such risks could affect payment system and financial stability, as well as consumer protection, if digital assets become widely used for payment. Regulators in some countries, such as the United Kingdom, the European Union, South Korea and Malaysia, have recently restricted the use of digital assets, primarily to investment, while many other countries are considering appropriate oversight of such activities.

The Bank of Thailand and the Securities and Exchange Commission are planning to issue guidelines, in the light of the increasing use of digital assets in payments for goods and services.

Meanwhile, many shops in Thailand already allow customers to pay with cryptocurrencies, including “Inthanin Coffee”, where 21 out of 750 of its branches accept such payments.

A 38-year-old customer said that he has been interested in investing in digital assets, which he has been researching for the past 7 months. Normally, he would only use digital assets for investment, but now he can use them for other payments,which provides him with an additional level of convenience.

Not many people are making payments with digital currencies yet, as some are still concerned about security, especially hacking.