Thailand will implement Thaksin’s proposal to create a Pilot Payment Project for Bitcoin. Binance, a crypto giant, will back the pilot which aims at fostering Thailand’s tech savvy investors.
Binance Thailand has called for Bank of Thailand oversight, stressing that the nation must “not be left behind.”
Nirun Fuwattananukul of Gulf Binance spoke with Bangkok Post and highlighted Thailand’s potential as a leader in digital innovation. He stated there was a need to create a regulatory framework in order to combat the volatility and risks of the cryptocurrency industry.
Shinawatra’s plan to test a Bitcoin-based pilot program is “extremely beneficial for the industry of digital assets,” he said.
It shows not only that crypto is gaining momentum globally, but also that leaders at all levels are embracing this transformative technology.
Shinawatra, the former premier of Thailand, proposed that Phuket could be used to test Bitcoins in order to boost tourism. Shinawatra has not advocated for Thailand to buy cryptocurrencies. However, he encouraged the nation to engage and study digital assets.
Binance will support Thailand’s Bitcoin Pilot Plan
Nirun, Binance Gulf’s head of the Gulf region, stressed Thailand’s reliance upon tourism and foreign inflows. He said that integrating crypto currencies into Phuket’s economy would align with the strengths of this country.
He also warned about the inherent risks of embracing this asset type, including the volatility, the security concerns and the regulatory challenges. Binance’s executive stated that adopting a sandbox is “a prudent strategy”.
“It creates a controlled environment in which regulatory authorities can closely observe and assess the consequences, while businesses gain practical experience.”
He believes a “sandbox” approach will help to better understand risk control, before planning wider implementation.
Nirun compared Bitcoin payments in other countries, including the US and Japan. He said Thailand can benefit from these countries’ experiences.
The Binance chief noted, “The central banks of Thailand should thoroughly examine the risks and rewards associated with Introducing Bitcoin as a payment option or any other cryptocurrency.”
In January, Binance opened its joint-venture crypto exchange Binance Thailand. This was done in collaboration Gulf Innova, an affiliate of Gulf Energy Development. The exchange has also partnered with Binance Kazakhstan and local Thai banks to offer brokerage services.
