Central bank reiterates warning against Bitcoin investment

The central bank has reiterated it’s stance to not recognize the digital currency Bitcoin and instead will cooperate with the anti-money laundering office to prevent it to become a tool for money laundering.

It also warned the people against investing in this currency as it carries high risk of loss.

Bank of Thailand governor Veerathai santiprabhob yesterday (Dec 19) said that Thailand doesn’t recognize Bitcoin because of its high risk.

Bitcoin, he said, is a form of cryptocurrency and by definition, can be exchanged for other commodities such as gold, petroleum and certain products and services.

As the digital currency works without any central bank or single administrator, he said  investors must exercise extra caution as the risk is extremely high.

It’s high volatility is another factor that should deter anyone from taking a risk as no country in the world recognizes it, he said.

BOT governor Veerathai santiprabhob

Another question is the fact that Bitcoin operates without a moderator which according to recent news saw its ledgers hacked and shutdown resulting in major losses.

Mr Veerathai admitted that what concerns the central bank was the fact that the general public has very little understanding of the risks and many have been fooled into investing.

He went on saying that the central bank is pondering how to protect the people from investing in the digital currency, and prevent it to become a tool for money laundering.

The central bank will cooperate with the Anti-Money Laundering Office to monitor its movement closely, the BOT governor said, adding that the validity of any currency is its legally guaranteed use as payment which Bitcoin does not possess.