Thailand eyes Phuket for bitcoin sandbox experiment
Thailand is edging closer to cryptocurrency adoption, with Finance Minister Pichai Chunhavajira dropping hints about extending the bitcoin sandbox experiment in Phuket. This bold move could position Thailand as a regional leader in digital currency innovation.
“We are not suggesting replacing existing currencies with bitcoin.”
Pichai emphasised the controlled nature of the trial. Under the sandbox model, bitcoin would be used for transactions, but recipients wouldn’t handle the cryptocurrency directly. Instead, funds would flow through the system via standard financial transaction processes, ensuring stability.
Pichai likened the process to foreign tourists using credit cards in Phuket.
“There is no risk for those receiving bitcoin, thanks to the clearing process in the financial market.”
The finance minister also highlighted the growing demand for Bitcoin and its potential to improve financial efficiency.
“The move would help increase channels for people to use money more effectively.”
The Bank of Thailand (BOT) has raised concerns about cryptocurrency volatility. However, Pichai dismissed fears, clarifying that bitcoin would only be used within the sandbox and not as part of the country’s foreign reserves. He left the door open for future BOT considerations of digital assets, hinting at a careful approach similar to past studies on including the Chinese yuan in reserves.
The idea gained fresh momentum after former Prime Minister Thaksin Shinawatra stressed the importance of digital asset studies during a lecture in Hua Hin. Thaksin called for proactive measures, warning that the global pivot to digitisation and economic challenges, including potential US trade tariffs and Bitcoin’s role in national debt strategies, demand swift adaptation, reported The Nation.
In related news, in a staggering leap that has set the crypto world ablaze, bitcoin shattered the US$100,000 mark for the first time, skyrocketing from around US$69,000 just a month ago. This meteoric rise comes hot on the heels of the US presidential elections, fuelling frenzied speculation among crypto investors about the impact of Donald Trump’s return to prominence.
