Thailand Finance Minister Predicts Crypto Investments Damaging The Economy

Presently, crypto is gaining some dominance in the security industry, linked to some traditional assets’ underperformance. Last year, when the global pandemic broke out, many individuals searched for an alternative to gold, stocks, and other assets, which did not perform as most people expected. Some experts say that the current crypto investments could hurt a country’s revenue and economy, as most people now bypass taxation and other mediums.

Thailand’s finance minister might share the same belief as those experts because he said that excessive crypto speculation could hurt its economy. Like many other Asian countries, Thailand joined the current cryptocurrency trend, with many of its citizens holding the digital assets.

Minister predicts crypto’s effect on the stock market

Arkhom Termpittayapaisith, Thailand’s finance minister, said that cryptocurrencies could affect the country’s economy if excessive speculation continues within the region.

The minister shared his view during a capital market conference, as he spoke against the global community’s current digital asset trends. He also mentioned that the stock market could face a significant hit when investors start taking a preference for cryptos instead of stocks.

The minister shared some data regarding the cryptocurrency market when he shared some figures from regulated trading platforms within the region. He said that trading platforms recorded around $2.17 billion in trading volumes for last month, while December had $600 million in total. The figures show a rapid increase in volumes, showing that cryptocurrencies now have a large market in the Asian country.

Bitcoin, which is the world’s largest crypto, is the preferred digital asset of many people, with the asset hitting different all-time highs within a short period. Most of the crypto trend started around the asset’s $20,000 reach in late December, which helped the bulls drive the price to $40,000 by early January before a correction occurred.

Now, with Tesla’s hefty investment, the asset is finally regaining some bullish momentum to take the $50,000 mark. The favorable situation surrounding cryptocurrencies attracted investors worldwide to join the ongoing trend.

Thailand has younger citizens shifting from stocks to crypto

Some sources claim that most of the trading volumes come from the younger generation, who prefer the digital assets industry to the traditional investment, which has driven some governmental officials like the minister to speak on the issues.

Arkhom opined that the considerable money flowing into the digital asset space could significantly hurt the struggling economy, which faces some problems due to the pandemic.

The minister also spoke on crypto’s volatile nature and added that the price could fluctuate and change at any point, thereby causing some financial troubles for retail investors. The minister is not the only one who doesn’t like digital assets.

Another government official, the secretary-general of Thailand’s Securities and Exchange Commission, Ruenvadee Suwanmongkol, had previously spoken on cryptocurrency and how volatile the asset class could be.

The government seems to believe in blockchain technology, but not cryptocurrencies, as it said that the latter could aid money laundering. The Thailand government also clarified that Bitcoin could not be regarded as a valuable asset because it failed to meet some requirements

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