Thailand May Consider Piloting a Bitcoin Payment Project

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As a seasoned analyst with extensive experience in the financial sector and a particular affinity for emerging technologies, I find Thailand’s recent moves in the crypto space intriguing. Former Prime Minister Thaksin Shinawatra’s proposal to utilize Bitcoin for tourism payments is a bold step that could potentially revolutionize the industry, given Thailand’s heavy reliance on tourism.

Last year in 2024, I noticed substantial advancements in the crypto realm for Thailand, particularly with the introduction of their Digital Asset Regulatory Sandbox. More recently, I came across a proposal by the former Prime Minister Thaksin Shinawatra suggesting Bitcoin could be employed for tourism transactions within the country.

As a passionate crypto investor, I’ve noticed that former Prime Minister Thaksin Shinawatra frequently voices his optimism and forecasts regarding Bitcoin, expressing his strong support for the digital currency landscape.

Thailand’s Efforts in Experimenting with Digital Currencies

As reported by The Bangkok Post, Thaksin proposes testing a Bitcoin payment system within the tourism industry, using Phuket as the test site for this experimental program, often referred to as a “sandbox” initiative.

In the context of our nation heavily relying on tourism and foreign investments, it seems logical for Phuket’s economy to adopt cryptocurrencies. This move could complement Thailand’s strategic advantages, potentially drawing in tech-oriented tourists and investors who are keen on such modern financial systems. As expressed by Nirun Fuwattananukul, the CEO of Gulf Binance.

Yet, as mentioned by Nirun, it’s important to note that the Bank of Thailand at present does not allow the use of Bitcoin or other digital currencies for transactions. This financial institution oversees the nation’s payment system.

In order for these experiments to take place, it’s crucial that there be conversations between the Securities and Exchange Commission (SEC) and the central bank, as they are responsible for regulating digital assets.

Thaksin has openly shown great enthusiasm for adopting and adjusting to digital currencies such as Bitcoin, suggesting that Thailand should align with the latest crypto developments to foster economic expansion. He anticipates that Bitcoin could potentially reach a value of $850,000, and he proposes creating stablecoins supported by government securities to enhance liquidity and strengthen the economy.

“What I am saying is not to buy it, but the trend is like that. There are already many cryptocurrencies. Some people say that in the future, we will have more currencies than countries. Today, Thai people must think and understand this. The Prime Minister may assign the Ministry of Finance to study whether to accept Bitcoin or not. Can we use sandboxes in tourist areas such as Phuket or Hua Hin? Use Bitcoin to let people who hold Bitcoin use it to spend money,” Thaksin stated.

Furthermore, data from Statista indicates that approximately 15.43 million Thai citizens are expected to use cryptocurrencies in 2024, making up more than a fifth of the country’s population. Statista predicts that the rate of new crypto users in Thailand might decelerate in the coming four years, possibly reaching 17.67 million by 2028.

Although there’s been a greater willingness for crypto exploration in Thailand, the nation has experienced a decline in its position within Chainalysis’s 2024 Global Crypto Adoption Index. From being ranked 10th in 2023, it fell to 16th place in 2024.

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2024-12-26 10:45