Thaksin urges Thailand to adopt Bitcoin and stablecoins, improve economy, reduce public debt, and defend 15% VAT proposal.
Thaksin Shinawatra, the former prime minister of Thailand, recently discussed important economic changes. He urged Thailand to adapt to new trends like Bitcoin and stablecoins. He warned the Thai trade sector to prepare for the return of Donald Trump as U.S. president. Thaksin said that Trump might take action against Thailand because of the trade deficit in favor of Thailand. He also said that Trump could utilize Bitcoin to settle America’s debts, which means that the usage of currencies would be revolutionized across the globe.
At a seminar in the resort town of Hua Hin on December 13, Thaksin gave a discourse on the future of money. He said that most of the cryptocurrencies are in circulation. Very soon there may be more currencies than there are countries in the world. He proposed that Thailand should consider using Bitcoin, especially in such areas as Phuket and Hua Hin believed to attract many tourists. This could help those who own Bitcoin to use their currency to spend in Thailand hence increasing the economy.
The other issue that Thaksin talked about was stablecoins. He suggested that Thailand wanted to issue stablecoins being collateralized by state bonds. This would assist in circulating money without having to print more banknotes as a way of increasing the circulating stock. Thaksin thought this would increase the growth rate of the economy. He said that the GDP will grow by 3.5% the next year. But he said that for the country to remain competitive with other ASEAN countries, the GDP should be 4% by 2026.
Thaksin Defends 15% VAT Proposal, Says It Aligns with Global Standards
He reacting to current issues affecting the Thai Economy Thaksin also spoke about the current issues in Thailand economy. He said that banks are not lending, and much money has been ‘‘sucked out’’ of the system. This is lacking due to which there is no growth in investment. He averred that the government must spend cash in the economy but the money cannot come from borrowing. Public debt should be reduced and this is why Mr. Thepthai said that the Pheu Thai Party must focus on this important matter.
He also highlighted the role of private capital. Therefore, Thaksin provided the case of flood control in Bangkok. He said that the private sector should invest in such projects more so when the government has little resources. He also complained about monopoly in the provision of electricity saying that prices should be made low to assist citizens.
Lastly, Thaksin discussed the proposed 15% Value Added Tax. He also said that the suggestion was made prematurely, creating confusion. But he went on to defend this tax as being in compliance with best practices around the world. If Thailand collects the 15% VAT, businesses could reinvest the savings into their operations, benefiting both businesses and the country.
