Thailand
Thailand: SawasdeeShop eyes cryptocurrency use
SawasdeeShop, an international money changer, will ask permission from the Bank of Thailand (BoT) to use cryptocurrency as an intermediary in international money transfers and currency exchanges in order to reduce costs.
Aswin Phlaphongphanich, president and chief executive at SawasdeeShop, said adopting cryptocurrencies and blockchain technology to cut costs in back-end operations can help the company survive amid intense competition and the pandemic when the decline of international tourists reduced demand for foreign exchange transactions.
The company was formerly a telecommunications company that transitioned into the foreign exchange business in 2018 after the international calling card service, its previous core business, was disrupted by the voice over internet protocol and smartphone technology which allows people to make international phone calls for free.
“Customer behaviours are changing faster than digital e-payment infrastructure,” said Mr Aswin.
He said just about 1% of the world population is using digital assets as intermediaries in international money transfers even though it is much cheaper.
People nowadays are still more familiar with the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system and use US dollars when they make international money transfers.
In Thailand, digital asset businesses and cryptocurrencies trading are regulated by the Securities and Exchange Commission and SawasdeeShop plans to partner with these licensed operators as soon as the BoT, as the regulator of baht currency and the country’s payment system, approves a digital asset settlement or the use of cryptocurrencies in international financial transactions’ back-end operations.
He said the company needs to conduct a feasibility study to find which cryptocurrency is the most suitable for the process. When a conclusion is reached, it will ask the BoT for approval and go into the regulatory sandbox process within about six months.
However, the destination countries in which cryptocurrencies will be turned into fiat money must also have regulations to support the digital asset settlement, such as Singapore, the Philippines, Australia and the US.
Among many contenders, a stable coin, or a cryptocurrency whose value is tied to other assets, is expected to be the most preferred candidate thanks to its low price fluctuation.
People tend to have more confidence in digital baht or digital dollar launched by authorities and the trust could be a catalyst for mass adoption.
With the coming of stablecoins, he said people must keep an eye on bitcoin or other cryptocurrencies and see whether they will be able to survive.
Recently, the BoT warned people to refrain from using Thai Baht Digital (THT) as they are illegal and there are no legal assurances or protection for users.
The bank declared that the baht-backed coin or Retail Central Bank Digital Currency is currently under the development process to make sure it is safe, truly meets people’s needs, and improves the business sector’s operational efficiency.
Source: https://www.bangkokpost.com/business/2088199/sawasdeeshop-eyes-cryptocurrency-use