Thailand is yet another country experiencing its own share of the cryptocurrency craze. However, the country’s central bank has recently warned investors and consumers alike to stay clear of the Baht pegged THT stablecoin. This coin, produced by Terra, has recently been accused by Thai bankers of being illegal on account of the lack of any securities being put in place by the cryptocurrency in order to prevent chances of fraud, theft, money laundering, phishing, or any other kind of cyber-crime.
THT has no protection or legal assurances
Just earlier in the day, the Bank of Thailand has stated that the reason for them issuing a stern warning and cautioning its users to stand clear of THT, Thai Baht Digital, is because they cannot see any assurances of legal or general protection is guaranteed. Pruettipong Srimachand, the assistant governor, acting on behalf of the central bank, had said that any and all activities concerning the stablecoin are to be considered illegal because the issuance, creation, circulation, or usage of any given token or material for the purposes of generating money is a clear-cut violation of Section 9 of the 1958 Currency Act.
In an era where cyber-crime is extremely common, one would be inclined to agree with the statement put out by the Bank of Thailand, as we cannot be too safe nowadays when it comes to something as volatile and unpredictable as cryptocurrency and digital trading.
THT could lead to fragmentation of the country’s currency system
In another recent statement, it was mentioned by the Thai governing authorities that the continued issuance of the THT could not only result in potentially fraudulent activities taking place, but it could also lead to a fragmentation of the national currency itself. This would occur if the cryptocurrency decided to go head-to-head with the Baht, and as a result, the country’s economy would be weakened.
Mr. Pruettipong further elaborated on this by explaining that in addition to the risk of fraud and theft, potential usage of THT could lead to an adverse effect on the general public and their confidence in the Baht and its continued stability. This could potentially be disastrous as the national currency is the cornerstone for nearly all economic activities that take place within Thailand as well as for international markets.
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