Thailand Should Study Crypto to Remain Relevant

Thaksin Shinawatra Encourages Thailand to get into Cryptocurrencies Former Thai Prime Minister, Thaksin Shinawatra, has urged Thailand to study cryptocurrencies so that they could be competitive in today’s fast-moving global digital economy. At the Intercontinental Hotel in Hua Hin, Shinawatra said, “We need to understand digital and its implication.”. “There are already so many cryptocurrencies. Some say in the future, we will have more currencies than countries. Thai people must think and understand this,” said Shinawatra. Without encouraging government investments in cryptocurrencies, Shinawatra urged that Thailand needed to move swiftly to be ahead of the digital race, particularly when international economies increasingly integrate blockchain and crypto technologies. Thailand’s Steps Towards a Digital Economy Regulatory Sandboxes for Crypto Innovation In August 2024, Thailand’s SEC unveiled a regulatory sandbox that would make doing business in digital assets more efficient. A regulatory sandbox allows the testing of new types of financial technologies in a controlled environment without being hit with immediate regulations. It’s a way to try and balance a strong digital economy with consumer protection. Digital Cash Distribution The ruling Pheu Thai political party decided to revive the economy in July 2024 by giving away 10,000 baht (around $280) to 45 million Thai residents. That digital cash initiative not only provided some instant financial respite but also showcased how the government is open to digital ways of solving economic issues. Crypto Adoption by Institutions Thailand is moving closer to institutional cryptocurrency adoption. In September 2024, Kasikornbank, the country’s second-largest bank, became the first licensed crypto custodian to offer its services to digital asset businesses with secure storage solutions. On the other hand, the SEC issued a proposal allowing mutual and private funds to invest in cryptocurrencies. This, according to Binance Thailand’s CEO Nirun Fuwattananukul, will significantly boost institutional participation in Thailand’s crypto market. Strengthening Global Crypto Partnerships Thailand is also actively collaborating with international entities to leverage blockchain technology. In October 2024, the Bank of Thailand partnered with the Hong Kong Monetary Authority (HKMA) under Project Ensemble. The collaboration focused on testing tokenized cross-border settlements, reflecting Thailand’s commitment to aligning with global financial innovation trends. As the world increasingly adopts digital currencies, Thailand has much to do in research and regulation to keep up with the times. The Kingdom can further its position as a leader in the global digital economy by continuing sandbox experiments, supporting institutional adoption, and fostering international partnerships.