The Bank of Thailand recently issued an important statement, announcing that local banks are not allowed to participate in digital asset transactions and do not support crypto payments. This decision caused an uproar in the financial community and triggered discussions and thinking about the future development of digital currencies. Let's take a deep look at the reasons, impacts and future trends of crypto payments behind this incident.

The background of the Bank of Thailand's move is due to the consideration of financial system stability and supervision. With the rise of digital asset transactions, loopholes and risks at the regulatory level have gradually become prominent, and the central bank must take action to curb potential financial risks. Against this background, the Bank of Thailand has made it clear that local banks are not allowed to get involved in digital asset transactions to ensure the healthy operation of the financial system and the protection of investors' interests.

This decision has a profound impact on the Thai financial industry. Many digital currency trading platforms and investors have been affected, and they have to re-evaluate their business models and investment strategies. Some digital currency trading platforms have even had to consider withdrawing from the Thai market to avoid violating local regulations. This move has also caused market shocks, making people re-examine the risks and returns of digital assets.

With the decision of the Bank of Thailand, crypto payments are also facing unprecedented challenges and opportunities. Although the central bank has made it clear that it does not support crypto payments, this does not mean that the development prospects of crypto payments are bleak. On the contrary, with the continuous development and innovation of blockchain technology, crypto payments are expected to become a safer and more convenient payment method in the future. For example, some internationally renowned companies have begun to try to use cryptocurrencies for cross-border payments, demonstrating the potential and advantages of crypto payments.

Against this background, the future direction of crypto payments has also attracted much attention. On the one hand, crypto payments need to overcome regulatory barriers and security risks in order to truly win the trust of the market and users. On the other hand, with the continuous evolution and improvement of the digital currency market, crypto payments may gradually become standardized and popularized, becoming an important part of the future payment system.

In general, the Bank of Thailand's ban on local banks from participating in digital asset transactions has had a profound impact on the financial market and crypto payments. This incident reminds us that the balance between financial regulation and innovation is crucial. Only under the premise of reasonable regulation can financial technology truly benefit society. As an important field of financial technology, crypto payments have broad development prospects and challenges. It requires all parties in the industry to work together to promote their healthy development and achieve the stability and sustainable development of the financial system. I hope that in the future, crypto payments will be able to usher in a better development prospect under the dual impetus of regulation and innovation.

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Chayawadee Chai-
Anant, senior director of the Bank of Thailand (BOT), said at a briefing on December 7: We do not want local commercial banks to directly participate in digital asset transactions because banks are responsible for the public's deposits; at the same time, Chai-
Anant also reiterated the central bank's position that it does not support digital assets as a means of payment for goods and services. She said that digital assets may be harmful to merchants and consumers because they are associated with high price volatility and cyber theft, personal data leakage and money laundering risks.

"If digital assets are widely used as a means of payment for goods and services, such risks may affect the stability of the payment system, financial stability and consumers."

According to the Bangkok Post, digital assets are becoming increasingly popular among individuals, companies and banks in Thailand. BOT senior director Sakkapop
Panyanukul also warned companies last week not to accept cryptocurrencies, believing that there are no asset-backed tokens behind them, just blank coins. And said: If other currencies are widely used, it will affect the central bank's ability to supervise the economy.

Thailand's tourism department vigorously promotes

Thailand's economy is heavily dependent on the tourism industry, but the tourism industry has been hit hard during the pandemic. Since September, the Tourism Authority of Thailand (TAT) has been looking for opportunities to launch its own token, TAT, and plans to attract wealthy cryptocurrency investors to travel locally.

Jirayut
Srupsrisopa, CEO of local Bitkub, spoke at the Transforming Tourism with Cryptocurrency Conference in late November, urging policymakers to approve the launch of the TAT token: The private sector is ready to provide digital infrastructure, we are just waiting for the government to press the button to help promote the digital asset market by enacting laws, regulations and even policies.

He even said: If we can strengthen this market, our national GDP can grow six times.

According to the Bangkok Post, Yuthasak
Supasorn, director of the Tourism Authority of Thailand, explained that the cryptocurrency movement will use digital technology to build a new tourism ecosystem, allowing wealthy people, including cryptocurrency holders, to transfer their funds directly to travel operators without agents or brokers.

Thai banking giant acquires local exchange

According to previous reports, Siam Commercial Bank (SCB), the oldest bank in Thailand, announced in early November that it had acquired a 51% stake in Bitkub, the largest cryptocurrency exchange in Thailand, with a total value of 17.85 billion baht (about 537 million US dollars). The CEO of Bitkub said at the time: Bitkub is no longer a startup, but is now becoming a necessary member of the key infrastructure of Thailand's financial industry 3.0.

Bitkub is a unicorn with a valuation of more than US$1 billion. According to Coindesk, from January to September this year, Bitkub's trading volume exceeded US$30 billion. It is the country's largest cryptocurrency exchange, accounting for 90% of the total cryptocurrency trading market in Thailand.

Amid low interest rates and the recent economic slowdown, Thailand, as the second largest economy in Southeast Asia, has gradually increased its demand for cryptocurrencies and other risky assets, and young investors have also transferred their assets to other high-return instruments to obtain better returns.