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payment system. In light of their characteristics and underlying technology,
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stablecoin can offer faster, less expensive payment options.

However, stablecoin would offer a variety of benefits, although there
are also challenges and risks that should be taken into account in developing

its ecosystem. These challenges and risks can include the lack of clarity of

a regulatory framework, in particular in relation to the legal status of stablocoins.
In this regard, a proper legal foundation for stablecoins arrangements is

needed.

It is vital to understand the main functions, features and the common

types of stablecoins in order to analyze the most suitable regulatory framework

to apply in their case. The most common types of stablecoins are fiat-
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collateralised, crypto-collateralised and non-collateralised varieties. To be
more specific, stablecoins can be categorised into three main types depended

on the underlying collateralized assets. This feature of stablecoins was

developed in order to stabilize their price, as it tied in with the value of the
underlying assets, as mentioned earlier.

4.2 Regulating Stablecoins under Thai Regulatory Regimes

4.2.1 Legal Status under Thai Regulatory Regimes

As per the aforemade statements, Libra coin is a type of virtual

currency that, accordingly, should be regulated under the same set of

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Investigating the impact of global stablecoins, G7 Working Group on Stablecoins,
<https://www.bis.org/cpmi/publ/d187.pdf> accessed 1 December, 2019.
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çWhat Are Stablecoins,é CBINSIGHTS, <https://www.cbinsights.com/research/report/what-are-
stablecoins/> accessed 1 December, 2019.

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