Bangkok: The Bank of Thailand has clarified that the trading of USDT coins within the country does not directly influence the value of the Thai baht. The bank has announced plans to enhance scrutiny on transactions involving digital asset exchanges.

According to Thai News Agency, Ms. Chayawadee Chaiyanan, Assistant Governor for Corporate Relations and Spokesperson of the Bank of Thailand, stated that the trading of USDT through domestic digital asset exchanges is akin to the trading of other financial assets, such as securities. She explained that when a transaction occurs, the buyer receives Thai baht in return, negating the need for US dollar exchanges. Consequently, USDT trading on digital asset exchanges in Thailand does not directly impact the Thai baht’s value.

Ms. Chaiyanan further noted that even if suspicious funds are utilized to trade USDT through a domestic exchange, the transaction involves Thai baht, thus not directly affecting the exchange rate. She highlighted that if the selling pressure on USDT surpasses the buying pressure, it could lead to a decline in USDT prices on Thai exchanges. This scenario may result in USDT being sold on foreign exchanges at higher prices, generating USD revenue that is then transferred back to Thailand and exchanged for Thai baht, potentially leading to an appreciation of the baht.

The Bank of Thailand currently mandates domestic financial institutions to report all types of foreign exchange transactions denominated in Thai baht, including those related to digital assets. Presently, foreign exchange transactions involving digital assets constitute less than 1% of all foreign exchange trading transactions, thus having a negligible impact on the value of the Thai baht. The Bank of Thailand is actively working to investigate and bolster monitoring of foreign exchange transactions that originate from digital assets.