Bank of Thailand announced the legalization of stablecoins

by in Cryptocurrency News

Bank of Thailand

The central bank of Thailand promises to implement regulation of digital currencies backed by fiat money by the end of 2021.

At the same time, the regulator emphasized that bitcoin and other unsecured coins will remain outside the legal framework. The Central Bank of Thailand published the corresponding statement this Friday.

As clarified by Reuters, citing the assistant to the head of the Central Bank Sirithida Panomwonu, the regulator is ready to recognize only stablecoins. These instruments are fiat-backed, so the government will be able to control them and protect their holders.

The assistant manager of the Central Bank also added: "The central bank is studying the recommendations of regulators and market participants. This is necessary before the rules are announced."

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In parallel, the representative of the Bank of Thailand pointed out the risks of investing in decentralized cryptocurrencies.

If citizens buy bitcoin or ether, then they will be responsible for their savings. The state will not be able to help them if they lose money.

Last year, the Bank of Thailand announced its intention to issue a national digital currency. Fintech startups and major financial companies will participate in the token creation project.