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Thai central bank warns against using digital assets for payments

Thailand's central bank on Thursday warned against using digital assets such as Bitcoin and Ether as payment for goods and services given what it said were risks such as cyber theft and money laundering.

Thai central bank warns against using digital assets for payments

FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva

BANGKOK: Thailand's central bank on Thursday (Jul 8) warned against using digital assets such as Bitcoin and Ether as payment for goods and services given what it said were risks such as cyber theft and money laundering.

The Bank of Thailand (BOT) had made it clear that digital assets were not legal tender, it said in a statement. 

Recently some enterprises had started soliciting payments in digital assets in exchange for goods and services, the BOT said, adding it had continuously monitored such developments.

In using digital assets as a means of payment, both the payer and receiver could face risks such as price volatility, cyber theft, and money laundering, it said.

"The BOT does not support the usage of digital assets as a means of payment for goods and services, a view that is consistent with many international organisations and regulators," it added.

However, should the use of digital assets for payments become widespread, the BOT said it would coordinate with the Securities and Exchange Commission and relevant agencies to take measures to ensure such actions did not pose risks to the public or the economic and financial system.

(Reporting by Orathai Sriring; Editing by Ed Davies)

Source: Reuters

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