According to the Bangkok Post, former Thai Prime Minister Thaksin Shinawatra has recently proposed a pilot program for bitcoin payments in the tourism sector on Phuket Island. In response, Nirun Fuwattananukul, CEO of Gulf Binance, the Thai branch of Binance, expressed a positive outlook during an interview. However, it is important to note that the Bank of Thailand still prohibits the use of bitcoin and other cryptocurrencies as payment methods.
(Background Summary: Binance’s bitcoin reserves have fallen below 570,000! A new low for 2024, will a 90% surge repeat the miracle?)
Globally, an increasing number of countries and enterprises are beginning to support bitcoin as a payment tool, a trend that has become more pronounced since Donald Trump’s election. Consequently, many countries with limited knowledge of bitcoin or cryptocurrencies are re-evaluating bitcoin’s potential and exploring whether to incorporate it into their national economic policies.
Further Reading: Russia announces: Bitcoin payments for international trade are now allowed; will it establish BTC reserves next?
Former Thai Prime Minister suggests a bitcoin tourism sandbox pilot in Phuket
According to the Bangkok Post, Thailand is considering a pilot program for bitcoin payments in the tourism sector on Phuket Island proposed by former Prime Minister Thaksin Shinawatra. In this regard, Nirun Fuwattananukul, CEO of Gulf Binance, stated during an interview that this proposal is very positive for the cryptocurrency industry:
“This not only reflects the momentum of global cryptocurrency adoption but also shows that leaders at the highest levels are embracing these transformative technologies. As more countries adopt digital assets and cryptocurrencies, Thailand cannot afford to lag behind.”
Nirun further stated that incorporating cryptocurrencies into Phuket’s economy could attract tech-savvy travelers and investors:
“Given our country’s reliance on tourism and foreign investment, integrating cryptocurrencies into Phuket’s economy could align with Thailand’s strategic advantages and has the potential to attract tech-sensitive travelers and investors.”
Additionally, Nirun mentioned that cryptocurrencies are a relatively innovative asset class; thus, implementing a sandbox pilot can ensure a thorough understanding and management of any potential risks before broader adoption:
“Implementing a sandbox approach is a prudent strategy. It provides a controlled environment for regulators to closely monitor and assess impacts while businesses and consumers gain practical experience.”
A successful pilot in Phuket could position Thailand as a regional leader in digital innovation. It could enhance our global reputation as a progressive nation ready to embrace the financial future while maintaining a responsible and regulated approach.
Hastily introducing bitcoin payments could impact Thailand’s monetary system
On the other hand, Nirun also noted that while bitcoin payments have been implemented in several countries such as the United States and Japan, Thailand operates under a restricted monetary system, and introducing it hastily could affect Thailand’s monetary framework. Therefore, the Bank of Thailand needs to conduct a comprehensive investigation of the associated risks and benefits before introducing bitcoin:
“Introducing bitcoin or other cryptocurrencies as a payment method could impact monetary liquidity and the Bank of Thailand’s ability to manage economic stability. This necessitates a thorough study of the risks and benefits associated with this move.”
Moreover, Thailand’s payment system is governed by the Bank of Thailand, which still prohibits the use of bitcoin and other cryptocurrencies as payment methods. In this regard, Nirun stated:
“This plan requires regulatory updates to be realized, which will necessitate discussions between the Bank of Thailand and the U.S. SEC to establish a regulatory framework.”
