Nirun Fuwattananukul, chief executive of Gulf Binance, has voiced support for Thailand’s Former premier Thaksin Shinawatra’s proposal for a pilot Bitcoin payment project. Calling it a positive step towards boosting Thailand’s competitiveness and attractiveness to tech-savvy visitors, the executive also expressed the primary need of the Bank of Thailand to thoroughly study the risks of such a decision.
In a recent discussion with local media, Nirun said the ex-prime minister’s suggestion of using Phuket as a Bitcoin sandbox for tourism reflects not only the accelerated global crypto adoption but also shows that highest positioned leaders are embracing these transformative technologies. He said, “As more countries adopt digital assets and cryptocurrencies, Thailand must not be left behind.”
“Implementing a sandbox approach is a prudent strategy. It provides a controlled environment where regulatory authorities can closely monitor and assess the implications, while businesses and consumers gain practical experience.”
He emphasized the approach of conducting Bitcoin pilot payment is significant as cryptos are still a relatively new and evolving asset class. Cryptos also pose inherent yet ‘uncharted’ risks, including volatility, security and regulatory challenges.
This pilot approach ensures that any risks are managed in a controlled environment before considering broader nationwide adoption.
Nirun believes that a successful pilot project in Phuket could establish Thailand as a progressive nation ready to embrace the future of finance while maintaining a responsible and regulated approach.
Nirun explained that Bitcoin payments are already being implemented in many countries, such as the US and Japan, but contrary to these countries, Thailand works under a restricted currency system.
“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. This makes it crucial for the central bank to thoroughly study the risks and benefits associated with such a move,” he said.
Some of the prominent concerns in Bitcoin payment systems include the potential impact on currency controls, capital flows and monetary policy. As a result of this, a wide crypto payments adoption without adequate safeguards, could disrupt traditional financial mechanisms or challenge the central bank’s ability to monitor and regulate economic activities.
Nirun also pointed out that for an efficient regulations compliant framework, a joint discussion between the central bank and the SEC would be needed. Discussions on consumer protection, anti-money laundering measures, and the potential impact on Thailand’s financial stability are of great significance.
Also Read: Thailand SEC Proposes New Crypto Investment Rules for Mutual and Private Funds
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