Libra Likely to Encounter Legal Hurdles in Thailand

Asia Blockchain Review
July 23, 2019

Facebook’s Project Libra has generated a lot of excitement among cryptocurrency enthusiasts, with some believing that the token will be the final push that places virtual currencies in the mainstream. However, the Libra has also attracted the attention of state regulators, who are unnerved at the prospect of tech giants disrupting global monetary and financial systems. 

The situation is no different in Thailand, where the Ministry of Finance has signaled that the Libra would face regulatory hurdles. According to a report by local news outlet The Bangkok Post, a state financial policy expert has said that the Libra does not fit existing legal definitions for currencies. 

Libra Would Not Constitute Legal Tender in Thailand

According to Sumaporn Manason, a legal officer of the Ministry of Finance’s Fiscal Policy Office, cryptocurrencies in Thailand do not constitute legal tender according to the Bank of Thailand’s Currency Act. 

Under the Currency Act, legal tender is defined as a banknote or coin with value in Thai Baht or identifiable as an object or note used to pay debts or exchange with other currencies in accordance with the law. 

Sumaporn explained that the Libra is not a tangible payment medium and, moreover, fails to fit any definitions in related laws, such as the Payment Systems Act.

Libra as a Stablecoin Backed by Fiat Money

Libra’s creators announced that the token is designed to be a stablecoin, meaning its price would not wildly fluctuate like other virtual currencies, such as Bitcoin or Ether. The value of Libra will be backed by a basket of currencies. 

Money spent to purchase Libra will be stored in a reserve used to back the value of the virtual currency. Therefore, the value of Libra will correlate with major stable currencies, like the US Dollar and the Euro. 

Nonetheless, the future of Libra in Thailand remains uncertain. The Bangkok Post reported that according to Supaporn, authorities could enforce an outright ban, no regulation whatsoever, or “regulation through an intermediary.” 

Source: https://www.bangkokpost.com 


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Blockchain Enables Verification of COVID-19 Immunity
Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

November 21, 2020

Illicit Cryptocurrency Activity: A Concern
Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

November 20, 2020

IBM Using Blockchain to Help Businesses Reopen during COVID-19
IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

November 20, 2020

Canadian Pacific Railway Collaborates with TradeLens
Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

November 19, 2020

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us