The Thai central bank postpones CBDC testing until late 2022 according to the latest reports that we have in our cryptocurrency news today.
The Thai Central Bank postpones the testing of central bank digital currencies to later in 2022 and the retail CBDC will be tested as an alternative payment method for cash-like activities on a limited scale according to Assistant Governor Vachira Arromdee. Thailand will go slow in testing the digital currency sector but it does have an issue with fund transfers and payments as many other countries do. The pilot will test the withdrawals, deposits, and transfers and will involve about 10,000 users.
As recently reported, Sakkapop Panyankul who is the senior director at the Bank of Thailand’s Monetary Policy Department clarified that the central bank doesn’t ban crypto, and using it is not illegal. He explained that the Bank of Thailand is now discussing how to regulate crypto with the crypto-related agencies and stakeholders and aims to limit consumer risks that are associated with crypto payments. Noting that some people could already be using crypto to pay for goods and services in Thailand, the director noted that using crypto is not illegal but users have to be able to accept the risks. The Thai central bank said that crypto is not legal tender in the country and using it as a medium of exchange will constitute barter trade between the owner of the digital assets and the provider of goods and services where the payers and receivers will accept all risks involved.
In the meantime, the Thai central bank said that it discourages commercial banks from being involved in trading with crypto because of the high risks stemming from the high price volatility. According to a June 1 report from the Bangkok Post, Thailand’s Securities and Exchange Commission announced that any activities that are related to Defi could require a license from the financial regulator in the near future and the SEC stated that it will target DeFi protocols that will issue the tokens.
The latest regulatory crackdown came after the launch of the native token for the Thai Defi protocol TukTuk Finance on the smart contract platform that is operated by Bitkub. The report outlined that the prices surged to a hundred dollars before collapsing to $1 in a few minutes and according to the platform’s official website, the protocol attracted a total value locked of $18 million with the token trading at $1.93 to give the project a market cap of $7.1 million. This is the first time that the SEC targeted DEFI
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