Bank of Thailand tells citizens not to use Bitcoin to buy products or services because it’s not a currency

Last month, the Bank of Thailand allowed the country’s largest Bitcoin exchange site Bitcoin.co.th to resume operation once again after forcing it to shut down in August. Prior to that, the bank ruled the cryptocurrency was illegal. Today, it seems the status of Bitcoin has taken another turn. The Bank of Thailand warned Thai citizens to not use Bitcoin as a mean of payment because Bitcoin is not a currency.

Here’s how the Bank of Thailand describes Bitcoin:

Bitcoin is electronic data. Thus, it’s not considered a currency and can’t be used for payments, and it’s not considered legal tender like money. With no self worth, the value of such data varies based on the needs of the market. Bitcoin changes in value very quickly and it could became something of no value if none desired it.

(See: Singapore government changes its mind, will regulate Bitcoin after all)

The bank also urges Thais to look at the ongoing MtGox’s controversy as an example of how Bitcoin is risky business. In addition, the Bank of Thailand also made it clear that in case of theft, loss of value, or fraud, Thai people cannot claim damages because there’s no law to regulate Bitcoin in Thailand.

Want to learn more? Be sure to check out our Bitcoin debate at Startup Asia Singapore 2014 on May 8.

(Source: Manager.co.th)

(Editing by Paul Bischoff)