The announcement of Facebook’s cryptocurrency project ignited concerns among regulators and lawmakers in both east and western countries. Thailand’s central bank, however, is inclining towards the favor of the upcoming digital currency.
Veerathai Santiprabhob, the governor of the Bank of Thailand, recently said that regulators should consider both pros and cons of Libra, according to a Bangkok Post report.
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Mentioning the benefits of the upcoming digital currency, he said that it would open more opportunities to Thai nationals in financial access. However, before making any decision, he wants to evaluate the operational and security risks of the coin.
The central bank will monitor the digital coin’s verification and authentication criteria, along with its compliance towards the existing money laundering laws.
Finance Magnates earlier reported that the Thai central bank is already in talks with the social media company about Libra and formed a task force of experts to study the proposed cryptocurrency.
Mentioning the concerns of Libra to replace fiats, Santiprabhob said: “Replacing a national currency with a digital one is not easy, especially where people are confident in the local currency, the financial system, and foreign exchange stability.”
Though Thailand is getting softer towards Facebook’s crypto initiative, the scenario is different for other major Asian countries. Earlier, the California-headquartered company confirmed that it is not going to launch any of its crypto-based products in India, which is also the largest market for its social media platforms, due to the hostility of regulators.
Meanwhile, in a recent report, a G7 working group warned about Libra’s potential to disrupt the global financial stability. However, it also acknowledged that the project could bring financial inclusion to the unbanked population.
The social media company also recently faced two consecutive hearings in the United States by the Senate and the House over concerns of data privacy of Libra users.