Thailand weighs Bitcoin payments amid push for financial innovation
Phuket could lead Thailand’s crypto innovation push
Thailand is evaluating a bold proposal from former Prime Minister Thaksin Shinawatra to use Phuket as a pilot site for a Bitcoin payment system to enhance the country's appeal and attract new investors.
Gulf Binance CEO Nirun Fuwattananukul expressed support for the idea, describing it as a positive step for the digital asset industry. However, he emphasized the need for a well-regulated approach due to risks such as price volatility, according to Coincu.
A vsion for innovation
Nirun highlighted that integrating cryptocurrencies into Phuket's economy could align with Thailand’s strategic strengths, particularly its reliance on tourism and foreign investment. He noted that adopting digital assets would signal Thailand’s readiness to embrace transformative technologies and keep pace with global trends in cryptocurrency adoption.
At the same time, Nirun suggested that implementing a “sandbox” approach in Phuket for the Bitcoin payment system would provide a controlled environment for regulatory authorities to monitor the implications while allowing businesses and consumers to gain practical experience.
Regulatory challenges
While Bitcoin payments are already used in countries like the U.S. and Japan, Nirun stressed that Thailand's restricted currency system poses several challenges. The Bank of Thailand (BoT) must thoroughly evaluate the potential impact on monetary flow, currency control, and economic stability before broader adoption can be considered.
Current regulations prohibit the use of cryptocurrencies as a payment method in Thailand. Payment systems fall under the BoT’s jurisdiction, while digital assets are regulated by the Securities and Exchange Commission (SEC). Collaboration between these entities would be essential to align regulations and manage the initiative effectively.
Balancing innovation and risk
Nirun also highlighted the need for a structured approach that addresses consumer protection, anti-money laundering measures, and financial stability. He noted that coordination between regulators, industry players, and policymakers would be critical to achieving the right balance between innovation and risk management.
Previously, the SEC proposed allowing the use of cryptocurrency products in mutual funds and private investments, demonstrating a broader trend toward integrating digital assets into Thailand's financial ecosystem.
