Former Thai Prime Minister Thaksin Shinawatra urges the adoption of stablecoins and the legalization of online gambling to boost Thailand's revenue and innovation.
Former Thai Prime Minister Thaksin Shinawatra stated that allowing stablecoins and other tangible asset-backed tokens to be traded "poses no risk." He also urged regulatory bodies to legalize online gambling to increase revenue sources.
Thaksin believes that the Thai government has missed out on nearly $4 billion (100 billion Thai baht) in online gambling tax revenue. According to Reuters, Thaksin urged Thai authorities to legalize the online gambling ecosystem during an event.
This suggestion was made hours after the Thai Cabinet approved a bill to legalize casinos and gambling - the "Entertainment Complex Business Law." The law aims to allow the establishment of entertainment venues and casinos, and to tax Thailand's underground gambling industry.
The Political Legacy's Impact on Thai Regulations
Although Thaksin is not a member of the current government, he still has a significant impact on Thailand's political landscape. His daughter, Paetongtarn Shinawatra, serves as the Prime Minister of Thailand.
When announcing the approval of the bill, the current Prime Minister emphasized similar laws implemented in Singapore, which have had a significant positive impact on the island nation's tourism industry and GDP.
The Thai House of Representatives needs to sign the bill into law.
According to the former Prime Minister, the Thai government is developing a plan to regulate and tax online gambling. He said:
"Online gambling has 2 million to 4 million Thai users, saving about 300 billion Thai baht annually, with revenues and losses around 500 billion Thai baht. If we could impose a 20% tax [...], we could generate over 100 billion in revenue annually." Thaksin explained that online gambling would involve a passport-style access system for monitoring purposes: "We will have a passport to control who can play."
Former Thai Prime Minister Suggests Adopting Cryptocurrencies and Stablecoins
Building on previous suggestions to study cryptocurrencies and continue related sandbox experiments, Shinawatra advocates for the adoption of stablecoins and other non-volatile cryptocurrencies.
He has asked the Thai Securities and Exchange Commission (SEC) to allow trading of "stablecoins, i.e., asset-backed coins."
Thaksin added that the city of Phuket in Thailand could be a pilot location for testing cryptocurrency payments. "There is no risk, it's just another currency in the world," he said.
Growing Interest in Digital Thai Baht Payments
In July 2024, Thailand issued social benefits to 45 million citizens using digital currency. To stimulate the economy, eligible Thais received about $280, costing the government $13.8 billion.
Additionally, the Bank of Thailand completed a central bank digital currency (CBDC) pilot retail project in April 2024.
The Bank of Thailand stated in its summary report, "There are currently no formal plans to issue a retail CBDC." However, it will continue to utilize the insights gained, "applying them to new areas and future studies on enhancing the payment system."
