Phuket may soon transform into a cryptocurrency haven as Thailand explores new ways to boost its tourism economy. Former Prime Minister Thaksin Shinawatra has proposed the island as the ideal location for a 'crypto sandbox', allowing visitors to freely utilise digital currencies like Bitcoin during their stay. ASEAN NOW



Reference picture courtesy: FreePik

 

Phuket may soon transform into a cryptocurrency haven as Thailand explores new ways to boost its tourism economy. Former Prime Minister Thaksin Shinawatra has proposed the island as the ideal location for a 'crypto sandbox', allowing visitors to freely utilise digital currencies like Bitcoin during their stay.

 

While other nations are still engaging in preliminary talks about embracing cryptocurrency, Thailand is poised to take decisive action. Thaksin believes the country is better prepared than its Southeast Asian peers to harness the financial potential of digital assets.

 

This is especially relevant following the cryptocurrency-friendly policies announced by the US under President Trump, which have been drawing global attention towards digital currencies.

 

A cryptocurrency sandbox is an experimental initiative permitting cryptocurrencies to function as viable alternatives to traditional money. This could streamline transactions for large purchases, such as real estate, which are commonplace among tourists in locations like Phuket.

By reducing the need to handle physical cash, this initiative potentially harnesses the substantial funds tourists bring but previously spent outside formal channels.

 

The head of Gulf Binance, Nirun Fuwattananukul, argues that a crypto-friendly environment in Phuket could elevate Thailand as a magnet for tourists, digital nomads, and innovative startups. This move aligns with Thailand's strategy to position itself as a forward-thinking nation.

 

However, there are hurdles to this ambition. Currently, the Bank of Thailand doesn't permit cryptocurrencies like Bitcoin as valid payment methods, even as the nation's Securities and Exchange Commission oversees crypto exchanges. Developing a regulatory framework to manage these transactions safely is crucial for success.

 

Implementing a crypto sandbox in Phuket will require new laws and financial regulations. Udomsak Rakwongwan from FWX notes merchants' reluctance to accept digital currencies due to accounting difficulties and price instability. Meanwhile, authorities will need to balance innovation with risk management to maintain Thailand's economic stability.

 

Encouragingly, the idea dovetails with Thailand's efforts to embrace cutting-edge payment technologies. The central bank has already initiated projects such as using stablecoins linked to the baht for payments, underscoring the nation's commitment to digital financial solutions.

 

With this proposed sandbox, Thailand aims to tweak traditional economic models and pave the way for groundbreaking digital transactions.

 

By embracing and regulating these financial innovations, the country could potentially emerge as a leader in digital asset management in the region. Should these initiatives in Phuket prove successful, they could serve as blueprints for further projects across the nation, reported Bangkok Post.

 

-- 2025-02-01