Binance endorses Thai ex-PM’s proposal for a pilot Bitcoin project

The chief executive of Binance’s Thai arm has encouraged the Bank of Thailand to consider former prime minister Thaksin Shinawatra’s proposal for a pilot Bitcoin payment project so the nation does not get left behind.

According to the Bangkok Post, Thailand is working towards making the ex-Prime Minister’s suggestion for a Bitcoin (BTC) payment pilot project a reality. Binance’s Thai arm will reportedly support the pilot project that aims to establish Phuket as a Bitcoin sandbox for tourism.

“Given our country’s reliance on tourism and foreign inflows, integrating cryptocurrencies into Phuket’s economy could align well with Thailand’s strategic strengths, potentially attracting tech-savvy visitors and investors.”

Nirun Fuwattananukul, chief executive of Gulf Binance, a joint venture between Binance Thailand and Gulf Innova.

Fuwattananukul viewed the idea as a positive step towards boosting Thailand’s position in the global economy as more and more regions like the U.S. and Japan are looking towards making use of Bitcoin as an alternative currency. He believes Thailand “must not be left behind” in regard to crypto adoption.

Though unlike those countries, Thailand is bound by government law to restrict payments to only its local currency. Therefore, the Bitcoin pilot project will give the central bank a chance to assess the risks and benefits associated with cryptocurrency.

“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,” said Fuwattananukul.

The Bank of Thailand holds jurisdiction over regulating the payment systems in Thailand, while digital assets fall under the scope of the Thai Securities and Exchange Commission.

According to the Gulf Binance head, both the central bank and SEC will need to work together to align their regulatory frameworks and coordinate in seeing this pilot project through. Key considerations would include consumer protection, anti-money laundering measures, and the potential impact on Thailand’s financial stability.

“The regulatory framework would also need to ensure that crypto payments operate within the country’s existing monetary policies and currency controls,” he said.

As previously reported by crypto.news in November, Binance has been eyeing Thailand as a key market for pushing widespread crypto adoption as the country progressively becomes more open to crypto regulations.

Binance chief marketing officer Rachel Conlan said Thailand was among the top 20 Binance markets, with local crypto penetration estimated at 12%, double the global average of 6%.