Thailand's Central Bank Issues Warning Against Stablecoin Pegged to Thai Baht
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The Bank of Thailand, the country's central bank, has just issued a warning against the Thai Baht Digital (THT), a stablecoin issued by Terra that is pegged to the Thai bath, the country's official currency.

According to local media Bangkok Post, the regulator has issued a warning informing users the Thai Baht Digital (THT) has no guarantees or legal protection and that users could be at risk of cyber theft or becoming victims of money laundering.

Pruettipong Srimachand, the central bank's assistant governor of the legal group, has said any activity related to the stablecoin is considered illegal:

"The creation, issuance, usage or circulation of any material or token for money is a violation of Section 9 of the Currency Act 1958."

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It must be noted the crypto has been issued by the platform Terra, which has already issued other stablecoins such as TerraUSD and TerraKRW.

The company is also the developer of Chai, an e-commerce wallet that works with stablecoins and enjoys great popularity in Asia.

According to Terra, the crypto is pegged to the Thai bath, which has led authorities to fear that the asset could lead to the fragmentation of the Thai monetary system if it attempts to compete with the central bank-issued currency.

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