On April 1, Thailand will ban the use of cryptocurrencies for digital payments, while Argentina has indicated that it will not encourage their use in order to protect financial users.
Thailand has always had a controversial relationship with the digital asset industry, this time it has announced the Ban on cryptocurrency payments for services and productsThe country's financial authorities have pointed out that digital assets could become a threat to the financial system and the national economy.
Early reports, made public today, March 23, indicate that the country's exchanges must Stop any cryptocurrency payment services by April 1. Authorities also prohibit the promotion and use of crypto assets as a method of payment for goods and services in the nation.
The new regulation will come into force on April 1, 2022, however, companies will have until the end of the month to adapt to the new rules.
The decision by Thai regulators has surprised the country's users, who are estimated to have more than $3 million in cryptocurrency, as well as analysts and experts, who expected the government to take a more neutral stance with cryptocurrencies.
It should be noted that Thai regulation will only affect paymentsIn this regard, authorities have indicated that users will still be able to invest and trade in cryptocurrencies.
Argentina will not encourage the use of cryptocurrencies
On the other hand, as part of a debt restructuring agreement, which Argentina has signed with the International Monetary Fund (IMF), the country's regulators have committed to adopting a Contrary approach to cryptocurrency adoption.
The deal has not gone down well with Argentine users, who use Bitcoin as a hedge against inflation and high interest rates, which currently stand at 52%.
The debt restructuring agreement, worth $45 billion, will prevent Argentina from defaulting on its next payment to the IMF and will offer it a four-and-a-half-year grace period.
Of course, the IMF agreement with Argentina has conditions. The Andean country will have to reduce its deficit and stop printing money, as well as try to stop the use of cryptocurrencies within the nation.
The Argentine government has issued a statement stating that “for better safeguarding financial stability, will discourage the use of cryptocurrencies within the framework of money laundering prevention.”
In return, the Argentine government will offer official incentives for digital payments and will offer additional protection for financial consumers.
The agreement will allow Argentina, which has been unable to finance itself since 2020, to immediately access $98 billion in additional funds from the IMF.
