Thailand explores a Bitcoin pilot project in Phuket to boost tourism, with Binance CEO supporting the initiative amidst regulatory challenges.
Thailand is exploring the idea of a Bitcoin pilot project, proposed by former prime minister Thaksin Shinawatra. Phuket would serve as a tourism sandbox to test the project. The goal is to determine how Bitcoin could be integrated into the economy to lure tech-savvy tourists.
Binance Thailand CEO Supports Bitcoin Pilot Project in Phuket
Binance Thailand CEO Nirun Fuwattananukul has all kinds of support for the proposal. The country’s competitiveness and tourism appeals could be boosted, he says. Nirun considers the project as a good thing for the home country’s digital asset industry. ‘I think it reflects global crypto adoption and shows what leadership has embraced new technologies,’ he added.
Many countries have adopted cryptocurrencies, Nirun also noted. Thailand largely depends on tourism, and crypto could help it integrate in the economy of Phuket. This would attract more tech savvy visitors and investors making Thailand stand out on the global map.
But Nirun also warned the risks of cryptocurrencies. Price volatility, security threats, and significant regulatory burdens are part of this list. Some of these risks are still not completely understood. Thus, Nirun backs the notion of a controlled ‘sandbox’ approach to the pilot project. Importantly, such systems would provide regulators the means to monitor and assess risks, and businesses and consumers practice with the operations.
But he stressed that, if successful, Phuket could help make Thailand the leader in digital innovation. This would make Thailand be seen as a forward looking nation globally. But Nirun also noted that caution and regulation would be needed to get the balance right between innovation and risk management.
Bank of Thailand Faces Challenges with Bitcoin Payments
Bitcoin is utilized for payments in countries such as the US and Japan already. Thailand can learn from their experiences and look to solutions from their institution that work best for its situation. But Thailand has a closed currency system, which can determine how the central bank manages the economy.
This is why the Bank of Thailand must work out the implications of using Bitcoin for anything as simple as paying, since any form of currency flow has the potential to affect the economy. If Bitcoin started to be widely adopted, the central bank would be hard pressed to regulate economic activities. For that reason, regulators must collaborate.
Thailand’s central bank does not permit Bitcoin or other cryptocurrencies as payment at the moment. So any Bitcoin pilot project has to be agreed upon between the Bank of Thailand and also the Securities and Exchange Commission (SEC) and eventually others. Consumer protection and anti-money laundering would need to be the key issues.
On December 18, Thaksin also discussed how Thailand must adapt to trends like Bitcoin and stablecoins. Thailand should begin preparing for challenges, he warned, in case Donald Trump returns to power. Thaksin said he believed Donald Trump may retaliate against Thailand because of trade imbalances.
