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Sujha Sundararajan
Author
Sujha Sundararajan
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Thailand is planning to execute ex-Prime Minister Thaksin Shinawatra’s proposal for a Bitcoin pilot payment project. The pilot, which aims to foster Thailand’s tech-savvy investors, will be backed by crypto giant Binance.
Binance’s Thai arm has called for the Bank of Thailand’s oversight, emphasizing that the nation “must not be left behind.”
Speaking to Bangkok Post, Nirun Fuwattananukul, chief executive of Gulf Binance, highlighted Thailand’s potential in leading digital innovation. He said that there is a need for a regulatory framework to tackle the industry’s volatility and monetary stability risks.
Shinawatra’s proposal for a pilot Bitcoin pilot “is extremely positive for the digital asset industry,” he noted.
“It reflects not only the momentum of global crypto adoption but also demonstrates that leaders at the highest level are embracing these transformative technologies.”
The former premier Shinawatra proposed of using Phuket as a Bitcoin sandbox for tourism. Shinawatra did not advocate for Thailand to purchase cryptocurrencies but encouraged the nation to study and engage with digital assets.
Binance to Back Thailand’s Bitcoin Pilot Plan
Binance’s Gulf head Nirun stressed on Thailand’s reliance on tourism and foreign inflows. He said that integrating cryptocurrencies into Phuket’s economy could align well with the country’s strengths.
He also cautioned the inherent risks, including volatility, security concerns and regulatory challenges that comes in embracing the asset class. A proper sandbox approach “is a prudent strategy,” the Binance executive added.
“It provides a controlled environment where regulatory authorities can closely monitor and assess the implications, while businesses and consumers gain practical experience.”
He believes a sandbox approach would help understand risk controls, before planning for wider implementation.
Nirun also compared Bitcoin payments of other nations such as the US and Japan. He said Thailand can learn from these countries’ experiences.
“The central bank of Thailand should first thoroughly study the risks and benefits associated with Introducing Bitcoin or other cryptocurrencies as a payment method,” the Binance head noted.
In January, Binance launched its joint venture crypto exchange Binance Thailand, which comes in collaboration with Gulf Innova, a subsidiary of Gulf Energy Development. It has also integrated with local banks in Thailand and forged a partnership with Binance Kazakhstan for brokerage services.