While the Thai government vows to launch a sandboxed bitcoin payment programme in Phuket, a Thai blockchain business leader is calling for immediate action to develop a strategic cryptocurrency reserve.
Despite many countries already investing in cryptocurrencies, the founder and Group CEO of Bitkub, Jirayut Srupsrisopa, told Thai PBS World that it is not too late for Thailand to do likewise.
“In addition to the United States and China, Bhutan has over 10,000 bitcoins in reserve, while Thailand still lacks a clear plan for cryptocurrency as part of its future strategy. If Thailand aims to match Bhutan’s bitcoin holdings, the country would need to pay 6 times more than Bhutan initially invested,” Jirayut said.
With a single bitcoin likely to cost more than US$1 million in five years from now, the CEO noted that Thailand could lose opportunities to accumulate bitcoin assets at an early stage and attract cryptocurrency traders to Thailand.
Developing a less conservative policy outlook
With over eleven years of experience since the founding the blockchain platform, Jirayut highlighted how Thailand’s conservative policies hinder cryptocurrency adoption.
What the Bitkub platform can do is educate people about blockchain technology and set out a vision for future payment through such systems, according to the CEO, adding that Thailand will only develop a national cryptocurrency reserve if Singapore leads the way.
“Thailand is very conservative when it comes to ground-breaking policies in finance. We always follow Singapore. Developing actionable policies, such as acquiring a Bitcoin reserve, is imperative,” the CEO opined.
Phuket cryptocurrency experiment is a good start
With the Bitcoin project in Phuket being implemented this year, Jirayut noted that the sandboxed programme could attract cryptocurrency-related businesses and traders to the province, but he called for the scrapping of tax on cryptocurrency earnings to accelerate adoption.
Without capital gains tax on digital assets, the CEO underscored that ‘nano entrepreneurs’, which are usually very informal and operate without business registration, often from homes or a small stalls, led to crypto-related companies setting up regional hubs in Dubai, adding that Thailand could follow suit if the tax can be lifted.
Jirayut also pointed out that accessible channels to facilitate cryptocurrency transactions are necessary to convince crypto-savvy individuals to relocate to Thailand, saying that “traditional payment is no longer pragmatic, as wiring US$10 overseas is not economically viable through the established fiat currency banking system.”
Cryptocurrency is not a competitor to fiat currencies
When asked whether most Thais lack trust in cryptocurrency as payment, the CEO said that the government needs to support usable channels for cryptocurrency transactions, as the utilisation of bitcoin as payment grows globally.
“We can continue to use fiat currencies, such as the Thai baht, and credit cards. In the near future, though, some will pay by cryptocurrency. The blockchain infrastructure will become indispensable. So, cryptocurrency is not a competitor to the Thai baht; it is simply another way to pay for goods and services,” Jirayut added.
The conclusion of ASEAN’s digital economic framework agreement last year has highlighted the possibility of digital connectivity within the bloc, but the CEO said that the Thai government should fully agree with its terms.
To maintain Thailand’s competitiveness, Jirayut suggested that investment in frontier technological infrastructure will attract more foreign direct investment and economic growth, adding that forward aimed strategies in education would improve supply side labour quality.
Full interview:
