According to the Bangkok Post, former Thai Prime Minister Thaksin Shinawatra recently proposed a pilot program for Bitcoin payments in the tourism industry 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 should be noted that the Bank of Thailand still prohibits the use of Bitcoin and other cryptocurrencies as a form of payment.
(Background: Binance’s Bitcoin reserves have dropped below 570,000, reaching a new low for 2024. Will a 90% surge repeat the miracle?)
(Additional context: K33 Research: If history repeats itself, Bitcoin could reach the peak of this bull market on January 17.)
Globally, an increasing number of countries and businesses are beginning to support Bitcoin as a payment tool, a trend that has become more evident following Donald Trump’s election. Consequently, many countries with little knowledge of Bitcoin or cryptocurrencies are starting to reassess Bitcoin’s potential and explore whether to incorporate it into their national economic policies.
Further reading: Russia makes a significant announcement: Bitcoin is now permitted for international trade payments, with plans for BTC reserves to follow?
Former Thai Prime Minister Suggests Bitcoin Tourism Sandbox on Phuket Island
According to the Bangkok Post, Thailand is considering a pilot program for Bitcoin payments in the tourism sector on Phuket Island, recently proposed by former Prime Minister Thaksin Shinawatra. In this regard, Nirun Fuwattananukul, CEO of Gulf Binance, stated during an interview that the proposal is highly 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 noted that integrating cryptocurrencies into Phuket’s economy could attract tech-savvy travelers and investors:
“Given our country’s reliance on tourism and foreign investment, incorporating 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 represent a relatively innovative asset class, and implementing a sandbox pilot can ensure a thorough understanding and management of any potential risks before wider 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 on 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 May Impact Thailand’s Monetary System
On the other hand, Nirun pointed out that while Bitcoin payments have been implemented in several countries, including the United States and Japan, Thailand operates under a restricted monetary system, and a hasty introduction could impact the Thai monetary system. Therefore, the Bank of Thailand needs to conduct a comprehensive investigation of the associated risks and benefits before introducing Bitcoin:
“The introduction of Bitcoin or other cryptocurrencies as a means of payment could affect currency 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.”
Furthermore, Thailand’s payment system is governed by the Bank of Thailand, which currently prohibits the use of Bitcoin and other cryptocurrencies as payment forms. In this regard, Nirun stated:
“This plan requires regulatory updates to be realized, which will necessitate discussions and the establishment of a regulatory framework between the Bank of Thailand and the U.S. SEC.”
