Crypto gets shot

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The future outlook for cryptocurrencies in Thailand is bright after SCBx Group acquired 51% of Thailand’s leading digital asset exchange, Bitkub Online Co, with a whopping investment value of $ 17.85 billion. baht.

The deal could become a major driving force for cryptocurrency trading in Thailand.

Thailand was ranked 11th among the countries and economies with the greatest interest in crypto in 2021 on the Crypto Interest Index conducted by Coinformant, one of the leading crypto exchanges in Australia.

Ranking criteria are based on people’s engagement in the cryptocurrency, the amount of cryptocurrency ownership, and articles and research over the past 12 months.

Indonesia led the index with a 1,772% increase in engagement.

For Thailand, more than 3.6 million people are estimated to own cryptocurrencies and total engagement has jumped 435% in the past 12 months.

This sparked concern from Prime Minister Prayut Chan-o-cha who recently asked parents to warn their children about the risks of investing in cryptocurrency as a number of young people enter the market.

As Siam Commercial Bank, one of Thailand’s five largest commercial banks, is under its umbrella, the SCBx Group’s investment will boost the confidence of new entrants in the cryptocurrency market, which is a high speculative exchange. risk.

The investment also reflects the fact that the country’s leading financial and tech group sees the prospects for cryptocurrency as bright.

Bitcoin’s rally to trade above $ 61,000, up over 100% this year, and leading a rally of other digital coins, is attracting many new investors.

The exponential growth of the cryptocurrency market in recent years has posed major challenges for fiat currencies and the conventional monetary system.

Cryptocurrency contains levels of volatility that could cause an investor to suddenly lose large sums of investment.

Earlier this month, the value of a Squid coin, a digital coin named after the hit Netflix series Squid Game, plummeted from a high of over US $ 2,800 to zero after the creators Unknowns to the play cleaned up some $ 3.3 million in funds, a maneuver known as a “carpet pull”.

The cryptocurrency system is fairly new and not all investors understand how it works and it is not legitimized by the government or financial institutions.

Governments in various countries are concerned about whether the wider use of cryptocurrencies will lead to major instability in the financial system and they are trying to regulate it.

Yet regulators are aware that it is impossible to derail the rise of cryptocurrency trading.

Several central banks, including the Bank of Thailand, are trying to develop their own digital currency, the Central Bank Digital Currency (CBDC), to facilitate business payments.

In Thailand, cryptocurrency trading is still in its infancy and is full of risks and opportunities.

It will grow rapidly, attracting many new investors, both businesses and individuals. Many investors lack sufficient knowledge about innovation.

Government and regulators have a duty to find measures to deal with growing risks while ensuring that they do not stifle business activity.

They should be careful to educate people about cryptocurrency, its opportunities and risks, as it is no longer unrelated to people’s pockets.

Editorial

Bangkok Post Editorial Column

These editorials represent the Bangkok Post’s reflections on current issues and situations.

Email: [email protected]

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