Pay Solutions will seek approval from the Bank of Thailand (BOT) to become the country’s first online payment service provider to legally use cryptocurrency to pay for goods and services, its CEO said.
Pay Solutions CEO Pawoot Pongvitayapanu said his company will seek permission to use a stablecoin type as a means of payment for goods and services once the BOT issues regulations for the use of digital currencies like means of payment.
The BOT currently prohibits the use of cryptocurrencies as payment for goods and services for fear that their lack of stability will affect the country’s economy.
The BOT is currently working with the Securities Exchange Commission (SEC) and the Department of Finance on regulating the use of a type of stable digital asset, such as Stablecoins, as a means of payment. Stablecoins are digital currencies designed to be less volatile than cryptocurrencies by pegging their market value to an outside asset, such as baht.
Pawoot said that the BOT would only allow digital currencies that would not cause risks to the whole economic system to be used as a means of payment, and he is confident that a Stablecoin type would be safe because it will be backed by the baht.
“Thus, Pay Solutions aims to become the first to legally provide an online payment system using digital currency,” Pawoot said.
He said that Pay Solutions would conduct a test using a stablecoin type for payment in a closed ecosystem as a pilot project.
He said his company is drafting the details of the experience of using a Stablecoin type to send to the BOT for approval.
In the initial phase, the company would use around 10 million baht ($310,000) to back a stablecoin type and it would be used by its group companies to make online purchases or to collect reward points for deliveries. of goods from SHIPPOP.com, for example .
The experiment would be accompanied by regulations to safeguard the use. Users can pay Stablecoin from their e-wallets registered with Metamask and the payment would be made through the Binance Smart Chain (BSC) blockchain system, which is widely used around the world.
The operation plan will be ready to be sent to the BOT for review within a month, he added.
Napongthawat Photikit, director of the BOT’s Payment Systems Policy Division, said the central bank is now considering allowing the use of digital assets, which will not cause system risks, as a means of payment. He said Stablecoin is considered a “risk-free” digital currency because it is pegged to actual monetary value.
He said the SEC was compiling opinions on the matter after holding a public hearing on Feb. 8 on the use of cryptocurrencies as a means of payment.
THE NATION (THAILAND)/ASIA NEWS NETWORK