Central Bank of Thailand will begin to regulate stablecoins

By the end of 2021, the Central Bank of Thailand plans to adopt rules on stablecoins, the assistant to the head of the institution said. Reported by Reuters .

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

The Bank of Thailand (BOT) will regulate stablecoins backed by foreign currencies, assets, and algorithmic stablecoinsstablecoins. The rules will not apply to unsecured digital assets such as Bitcoin or Ethereum, the official said.

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 Assistant to the Governor of the Central Bank noted that the issuance of national currency-backed stablecoins will require approval from the regulator, since such assets can be classified as electronic money.

The BOT official believes the implemented policies are in line with the guiding principles of countries such as the UK, Singapore and Japan.

The central bank sees the benefits of new financial technologies and is ready to innovate, she said. BOT is currently developing its own retail digital currency (CBDC), the regulator added.

Earlier, the Ethereum studio ConsenSys became a partner of the Central Bank of Thailand for the second stage of a joint project with the Hong Kong Monetary Authority to create a CBDC .

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

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