Bitcoin reached a historic high of US$106,000 following Donald Trump’s presidential election win, indicating a recovery in the volatile cryptocurrency market.
In Thailand, the discussion around Bitcoin reignited after former Prime Minister Thaksin Shinawatra suggested using it in a controlled environment, like a sandbox pilot project in Phuket, to encourage digital currency spending. He also proposed creating a stablecoin backed by government bonds, though the Thailand Development Research Institute (TDRI) cautioned that the high volatility of digital currencies could jeopardize such initiatives and lead to confusion in the economy by introducing competition to the baht.
Investment strategists expressed skepticism about adopting Bitcoin as a mainstream medium of exchange, citing risks to the baht’s stability and the necessity to learn from other countries’ experiences first. The Securities and Exchange Commission (SEC) has initiated a regulatory sandbox for digital assets, but experts warn that more comprehensive testing and a secure system would be required before broader implementation.
Phuket has been suggested as a testing ground for cryptocurrency transactions, though tourism operators see no pressing need for such a shift since current financial systems work effectively. Concerns about the potential for cryptocurrency to facilitate criminal activity and the lack of infrastructure for digital currency payments have also been raised.
Industry leaders, while not entirely opposed to cryptocurrency, argue that Bitcoin lacks the backing of a tangible asset, making it a risky medium for transactions. They recommend limiting its use to speculative investment rather than promoting it as a legal currency. Without proper regulation and oversight, the responsibility for any issues arising from cryptocurrency transactions would fall entirely on users, raising significant concerns about economic stability.
