Bank of Thailand Warns Bitcoin Users, Calls it Risky

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Bank of Thailand Warns Bitcoin Users, Calls it Risky
Bank of Thailand Warns Bitcoin Users, Calls it Risky

Bank of Thailand Warns Bitcoin Users, Calls it Risky

In a statement to public, the Bank of Thailand (BOT) has issued a statement on Bitcoin wherein it warned consumers about its use. The national bank said that Bitcoin is not a currency and its use comes with inherent risks. It is not surprising at all for users as similar warnings have come up recently from various governments in the world.

Some governments wherein their national banks and regulatory bodies warned consumers include India, China, Mexico, Germany, etc. Silver line in all this statement on the part of the Bank of Thailand is that whereas it was believed that the legal status of Bitcoin has improved as earlier it was kind of banned last year.

The complete statement from the Bank of Thailand reads that the digital currency is electronic data and cannot considered a currency and can’t be used for payments or legal tender like money. It further said that Bitcoin does not have self-worth; the value of such data varies based on the needs of the market.

The major concern however is that Bitcoin changes in value very quickly and it could become something of no value if none desired it. Similar statement was issued by the Deutsche Bundesbank board member Carl-Ludwig Thiele wherein he said that Bitcoin is extremely volatile, a major concern for consumers and the regulatory bodies.

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Regional Economies like Singapore and Hong Kong Have Bitcoin ATMs

Now that the Bank of Thailand considers Bitcoin just electronic data with no intrinsic value which rises or falls depending upon the whims of the market.

Although the latest warning on the behalf of the Bank of Thailand is a concern for the supporters of the digital currency, silver line in the entire episode is that the message can be interpreted that there is no ban on Bitcoin. Earlier in July 2013, Thai-based exchange Bitcoin Co Ltd had to shut its operations due to lack of legality.

Later on this year in February it again started its services when the Bank of Thailand gave green signal for it. Thailand may have got cue from the regional economies like Singapore and Hong Kong which are not against Bitcoin.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com