The Baht-pegged stablecoin produced by Terra has come under fire from Thai bankers.
The Bank of Thailand has issued a stern warning against a privately issued stablecoin pegged to the national currency, the Thai Baht.
According to a Bangkok Post report on March 18, the central bank has told citizens that Thai Baht Digital (THT) has no legal assurances or protection and that users could be at risk of cyber theft or money laundering
Citing a sixty-year-old law, the central bank's assistant governor of the legal group, Pruettipong Srimachand, stated that any activities involving the stablecoin are 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.”
The stablecoin is issued on the Terra platform which has produced various other stablecoins including the TerraUSD, first issued in September 2020, and TerraKRW.