A pilot program to implement crypto payments in a tourist center in Thailand has received the support of the world’s largest cryptocurrency exchange.
According to Thaksin Shinawatra, Thailand is contemplating the implementation of a prospective Bitcoin demonstration project in Phuket as a tourism-focused laboratory.
The CEO of Binance Thailand has expressed his endorsement of the proposal, describing it as a constructive initiative that will enhance the country’s competitiveness and its capacity to attract tech-savvy tourists.
Nevertheless, the central bank in Thailand continues to prohibit crypto payments, despite the efforts of industry advocates and certain political proponents to transform the Kingdom into a digital hub.
Nirun Fuwattananukul, the chief executive of Gulf Binance, stated to the Bangkok Post that the proposition “not only demonstrates that leaders at the highest level are embracing these transformative technologies but also reflects the momentum of global crypto adoption.” Nirun later added:
The adoption of digital assets and cryptocurrencies by other nations is a trend that Thailand must not ignore.
He further stated that the country’s reliance on tourism and foreign inflows could be well-aligned with the strategic assets of Thailand by incorporating cryptocurrencies into Phuket’s economy, potentially enticing tech-savvy visitors and investors.
Nevertheless, Thailand currently maintains a regulatory supervision division, with the central bank overseeing payment systems and the Securities and Exchange Commission overseeing digital assets.
In contrast to countries such as the United States and Japan, which have already implemented Bitcoin payments, Thailand also operates under a restricted currency system.
In order to proceed with implementation, it is imperative to resolve numerous critical obstacles. The Bank of Thailand, which has historically been staunchly anti-crypto, will possess the ultimate authority.
The central bank must conduct a comprehensive examination of the risks, particularly those related to monetary flow and economic stability. Additionally, regulatory frameworks must be updated through collaboration between the BoT and SEC, which may require a significant amount of time.
The report also recommends the implementation of consumer protection and anti-money laundering measures.
In order to monitor and evaluate the implications before contemplating a nationwide adoption, the proposal recommends initiating with a controlled laboratory environment in Phuket.
Furthermore, foreigners who are either visiting or residing in the kingdom are unable to access a number of local payment systems and platforms, including Binance Thailand and PayPal.
Additionally, Fuwattananukul stated in October that Thailand’s digital assets market is in the process of transitioning from a retail focus to a more institutional one.
At that time, the Thai securities regulator proposed regulations that would permit institutional-grade mutual and private funds to invest in crypto products, including US spot crypto ETFs.
Also Read: Turkey introduces crypto AML laws
Wallets