Bank of Thailand, or BoT, is stepping up its game on the stablecoin front. The foundation warned citizens this week that Thai Baht Digital (THT), a baht-denominated stable currency issued by South Korean company Terra, has no legal guarantees or protection and violates the country’s currency laws.
Central Bank Assistant Governor Seritida Panomon Na Ayodhya said in a media release that the House of Representatives takes into account the views of market regulators and participants before presenting their actions, according to a report released Friday.
The plans aim to regulate asset-backed stack coins and algorithmic stack coins backed by foreign currencies, but not decentralized cryptocurrencies such as Bitcoin (BTC) or Ether (ETH). In this regard, BoT Bank said that investors can assess their own risks, according to Siritida.
The rules for using baht-backed stack coins will reportedly be in line with policies that are roughly in line with those in Singapore, Japan and the UK. These requirements include obtaining formal approval from the House of Representatives and the ability to classify it as electronic money. The ranking will make them subject to scrutiny by the central banks when it comes to money laundering and settlement.
Sereda stressed that the House of Representatives understands the benefits of financial technology and innovation and will continue to monitor new technology by implementing policies that support the local economy and support overall economic stability.
Meanwhile, BoT is collaborating with the Hong Kong Monetary Authority, the Central Bank of the United Arab Emirates and the Digital Currency Institute of the People’s Bank of China on a prototype central bank digital currency using distributed ledger technology. A project called Multiple Central Bank Digital Currency Bridge or m-CBDC aims to ease pain points when making cross-border transfers.