Thailand’s Central Bank Urged to Consider Thaksin Shinawatra’s Bitcoin (BTC) Payment Pilot Project Proposal

The chief executive of Binance's Thai arm has encouraged the Bank of Thailand to consider former prime minister Thaksin Shinawatra's proposal for a pilot Bitcoin payment project so the nation does not get left behind.

Thailand is working towards making former prime minister Thaksin Shinawatra’s suggestion for a Bitcoin (BTC) payment pilot project a reality, with Binance’s Thai arm set to support the initiative.

The proposal aims to establish Phuket as a Bitcoin sandbox for tourism. The move comes as several regions, including the U.S. and Japan, are looking towards making use of Bitcoin as an alternative currency.

According to Nirun Fuwattananukul, chief executive of Gulf Binance, a joint venture between Binance Thailand and Gulf Innova, the initiative aligns well with Thailand’s strengths and could attract tech-savvy visitors and investors.

However, Thailand is legally bound to restrict payments to only its local currency. As a result, the Bitcoin pilot project will provide the central bank with an opportunity to assess the risks and benefits associated with cryptocurrency.

“Introducing Bitcoin or other cryptocurrencies as a payment method could have implications for monetary flow and the Bank of Thailand’s ability to manage economic stability,” Fuwattananukul said.

The Bank of Thailand regulates payment systems in the country, while digital assets fall under the jurisdiction of the Thai Securities and Exchange Commission (SEC).

According to Fuwattananukul, both entities will need to align their regulatory frameworks and work together to oversee the pilot project.

The initiative will also be subject to Thailand’s existing monetary policies and currency controls. Key considerations include consumer protection, anti-money laundering measures and the potential impact on Thailand’s financial stability.

“Given our country’s reliance on tourism and foreign inflows, integrating cryptocurrencies into Phuket’s economy could align well with Thailand’s strategic strengths, potentially attracting tech-savvy visitors and investors,” Fuwattananukul said.

As crypto.news reported in November, Binance has been targeting Thailand as a key market for pushing widespread crypto adoption as the country progressively becomes more open to crypto regulations.

Binance chief marketing officer Rachel Conlan said Thailand was among the top 20 Binance markets, with local crypto penetration estimated at 12%, double the global average of 6%.