Thailand Should Embrace Crypto to Stay Relevant, Says Former PM Thaksin Shinawatra

As the global trend towards digitization continues to accelerate, former Thai Prime Minister Thaksin Shinawatra has urged the Thai government to actively study cryptocurrencies and further develop its regulatory approach to digital assets. Speaking at a recent lecture held at the Intercontinental Hotel in Hua Hin, Thaksin emphasized the importance of staying ahead in an increasingly digital financial landscape.

In his speech, Thaksin highlighted the growing prevalence of cryptocurrencies, noting that there are already thousands of different tokens and coins in circulation, with new ones being developed constantly. He pointed out that some experts believe there may one day be more types of currencies than there are countries. For Thailand to remain competitive on the global stage, he argued, it is crucial for the government and the public to understand and embrace digital assets.

While Thaksin did not advocate for Thailand to start buying cryptocurrencies, his message was clear: the government must explore and study these emerging technologies to understand their implications and potential. He also referred to the geopolitical and economic factors that make this exploration even more pressing, citing concerns about global trade tariffs and the potential for cryptocurrency, such as Bitcoin, to play a role in addressing national debt. According to Thaksin, these developments make it essential for Thai citizens to consider the future of finance, where digital currencies could play a key role.

In line with these sentiments, Thailand’s government has already taken steps to integrate cryptocurrencies into its financial system. In August 2024, the Securities and Exchange Commission (SEC) of Thailand launched a regulatory sandbox, allowing select service providers to experiment with digital assets in a controlled environment. Regulatory sandboxes are designed to provide businesses with the flexibility to innovate without the fear of legal repercussions, offering a unique opportunity to explore the potential of blockchain and digital currencies.

Further reflecting the government's growing interest in digital assets, the Pheu Thai political party rolled out a digital cash initiative in July 2024. As part of their economic stimulus plan, the program provided 10,000 baht (approximately $280) to 45 million Thai residents, giving them a direct stake in the digital currency space. This initiative aligns with Thailand's broader strategy to promote financial inclusion and digital innovation.

In addition to these efforts, Thailand’s banking sector has also made significant strides in adopting cryptocurrency-related services. In September 2024, Kasikornbank, the country’s second-largest bank, became the first Thai financial institution to receive a license to provide crypto custodial services, focusing on the needs of digital asset businesses.

Looking toward the future, Thailand's SEC also proposed new rules in October 2024 that would allow mutual and private funds to invest in cryptocurrencies. This move signals a shift towards institutional adoption of digital assets, with industry experts like Binance Thailand’s CEO, Nirun Fuwattananukul, viewing it as a step toward further integrating crypto into Thailand’s financial ecosystem.

International collaboration is also part of Thailand's digital currency strategy. In October 2024, the Bank of Thailand partnered with the Hong Kong Monetary Authority (HKMA) to test tokenized cross-border settlements as part of the HKMA’s Project Ensemble. This collaboration reflects Thailand's ambition to position itself as a key player in the evolving global landscape of digital finance.

Thaksin's call for Thailand to study and engage with cryptocurrencies is timely and aligns with the country’s broader efforts to explore innovative financial technologies. As digital currencies continue to shape the future of global finance, Thailand's proactive approach could ensure that the nation remains at the forefront of this transformation.