Bank of Thailand Governor: Digital Currency Use Won’t Replace Cash for Three-Five Years

The governor of the Bank of Thailand (BoT) has said that it will take three to five years for countries to switch from using cash to using digital currencies. The bank governor’s comments were reported by the Thai News Agency (TNA), a subsidiary of the Thai state-owned public broadcaster, Nov. 17.  

The central bank’s governor, Dr. Veerathai Santiprabhob, stated that digital currency would not replace fiat currency right away “because of complication[s], a readiness of people and an efficiency of technology.”

Although the BoT has not issued a central bank-backed digital currency (CBDC) yet, the Thai central bank is “now testing the use of digital currency for settling payment among financial institutions,” according to the TNA. The article also states:

“The BoT hopes that full implementation of using digital currency among financial institutions would take place during the first quarter of 2019.”

Previously this month, the head of the International Monetary Fund (IMF) Christine Lagarde urged the international community to consider the possibilities of endorsing CBDCs, Cointelegraph reported Nov. 14.

Back in July, the Thai central bank’s Santiprabhob had already announced that BoT was reviewing blockchain applications for cross-border payments to “improve regional financial connectivity,” Cointelegraph wrote Jul. 14.

SEC Shares New Thoughts and Ideas Regarding Crypto Regulation

The Securities and Exchange Commission (SEC) has released a public statement regarding crypto asset trading and the companies that issue such assets.

Blockchain Has Ups and Downs

In the statement, the SEC explains that while they acknowledge the benefits of technological advancements like blockchain, they’ve had specific impacts on the trading market that ultimately require companies dealing in the technology to adhere to certain rules. The notice reads:

The Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets (the “Divisions”) encourages technological innovations that benefit investors and our capital markets, and we have been consulting with market participants regarding issues presented by new technologies. We wish to emphasize, however, that market participants must still adhere to our well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies such as blockchain.

Where Do These Issues Come From?

The notice then proceeds to explain that most of the issues affecting the trading market in a not-so-positive way stem from three specific projects. The first is initial coin offerings, or ICOs. The second is companies or investment projects that center around cryptocurrencies or that try to get others to invest in them, and third is the “secondary market trading of digital assets.”

The notice then discusses some of the legal action it has taken against companies that have not adhered to the body’s registration processes or that have attempted to offer trading behind “closed doors” without proper supervision. Some of these companies include EtherDelta, AirFox, Paragon, TokenLot LLC and Crypto Asset Management.

This Is Good, People!

The SEC assures that the registration processes it has in place are designed to keep customers safe and their privacy intact. The idea is to protect customers and their money from those who do not play by the rules or who engage in illicit activity.

While it’s easy to jump into negativity and assume the SEC isn’t being open-minded, it can also be said that the organization recognizes the growing crypto market as a valid trading enterprise. Therefore, it is aiming to protect and oversee the arena as they would with stocks or bonds. More rules often mean that the market is expanding and becoming mainstream, and with more participants at the helm, the SEC wants to ensure these participants are shielded from the problems that often come with investing.

In many ways, rules and regulations signify a positive change in the market; that more people are trading, and thus require appropriate protections.

Do you agree with the SEC’s legislation regarding the crypto market? Post your comments below.

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The Only Regulated Bitcoin Exchange in Germany Will Become A Bank in 2019

The operator of Germany’s only regulated cryptocurrency exchange has confirmed it will de facto become a bank after securing a 100 percent takeover of Tremmel Wertpapierhandelsbank. Buys Tremmel Wertpapierhandelsbank

Bitcoin Group SE, which operates, will be able to offer a raft of services connected with cryptocurrency thanks to a banking license once the deal goes through.

Frankfurt-based Tremmel has operated as a minor financial institution since the early 1980s, with previous owner Rainer Bergmann staying on to contribute to future growth and oversee the creation of a “deposit institution,” a press release confirms.

Bitcoin Group SE

“We are very pleased that in Tremmel Wertpapierhandelsbank GmbH and in particular Mr. Rainer Bergmann we have been able to gain an excellently positioned partner with in-depth knowledge of the market,” Marco Bodewein, Managing Director of Bitcoin Group SE commented.

This will enable us to take the corporate development of Bitcoin Group SE to a new level.

Consumer Adoption Focus

Once the process completes, which is expected by Q3 2019, will be able to provide services such as Bitcoin ATMs.

The right to provide exchange services, including via such machines, among non-banking license holders currently forming a contentious issue in Germany, Bitcoinist recently reported.

The main focus for Bitcoin Group, however, will be to turn into a “cryptocurrency exchange with a multilateral approach.”

“This offers numerous advantages,” the press release continues.

For example, it would be possible to maintain an order book and even quote prices, which would at the same time ensure more liquid trading.

Bitcoin Group first hinted it would be acquiring a “regulated bank headquartered in Germany” in May, the latest move further increasing its presence as the only regulated option in the country.

Has Berlin’s Bitcoin Brigade Been Blinded by Bullishness?

As Bitcoinist noted, this stance firmly contrasts with that adopted by its neighbors, with both Switzerland and Austria favoring a constructive regulatory attitude to the cryptocurrency industry.

What do you think about becoming a bank? Let us know in the comments below!

Images courtesy of Shutterstock,