[Blockchain Today Reporter Park Yohan] Thailand’s central bank, Bank of Thailand, has taken an unprecedented measure of a ban on stablecoins linked to the fiat currency Baht. The reason was that the Thai people’s trust in the existing financial system could be undermined.
According to Cryptonews reports, the stablecoin in question is THT, issued by a Korean blockchain corporation and Terraform Labs, a LUNA token issuer. Terra recently launched an anchor protocol for lending and savings, and issued a stablecoin linked to fiat currency in a decentralized way.
Earlier this week, Maeil Economic Daily reported that the company aimed at a fixed APR of 20% through the anchor launched on the 17th and said, “We will make it the highest-yielding stablecoin in the market so far.”
But the Bank of Thailand (BOT) does not seem to want it at all. The bank said in a press release, “At present, THT is not used as a means of trading, but if THT or other similar stablecoins exchange, substitute, or compete with the baht issued by BOT, it could break the Thai monetary system. This will ultimately affect the public’s confidence in the stability of the national monetary system, which is the cornerstone of all economic activity.”
Accordingly, the bank said, “All activities related to THT are considered illegal. All activities related to THT are not provided with legal guarantees or protections, and users need to be careful as they may be at risk of cyber theft and money laundering. You should not participate in related activities,” he added.
“They are always afraid of you until you join,” said Tera Kwon Do-hyeong, co-founder on Twitter. Terra is currently straining the central bank. Regardless of the bank’s preferences, THT will be adopted.”
However, the price of the mining cryptocurrency Luna (LUNA) to stabilize the price of Terra was hit hard by this news. At the time of Cryptonews report (08:18 UTC), LUNA was ranked 17th in terms of market capitalization, traded at $18.24, and fell 5% from the previous day, dropping weekly returns to less than 64%. LUNA has seen an increase of 236% over the past month and 13,304% over the year.
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