Finance Ministry studies implementation of digital currency sandbox

The Thai Ministry of Finance is examining frameworks for implementing digital-currency usage within a regulatory sandbox, with Phuket being considered as the initial testing ground. 

The initiative follows recent comments by former prime minister Thaksin Shinawatra regarding the establishment of a digital-currency sandbox in the province. A “sandbox" is an environment where companies can test new innovations under the supervision of a regulator.

Deputy Finance Minister Phaophum Rojanasakul, speaking at Government House on Tuesday morning, said internal discussions are under way within the ministry to determine appropriate mechanisms for both usage and regulatory oversight of digital currencies such as Bitcoin.

"Once we have reached our conclusions, we will proceed with consultations with the Bank of Thailand and other relevant agencies," Phaophum said during the 9.40am briefing.

When questioned about potential conflicts with the Bank of Thailand's Currency Act, Phaophum acknowledged this as a key consideration requiring thorough discussion. 

"This is indeed one of the matters that need to be addressed in our consultations, including both legal aspects and regulatory mechanisms. We need to wait for the complete findings of our study before moving forward," he said.

Responding to queries about the project's timeline, Phaophum emphasised the ministry's commitment to swift action.
 

"Everything needs to be executed as quickly as possible. Once we achieve operational readiness, we can launch the sandbox in the first area that meets all necessary requirements," he said.

The initiative represents a significant step in Thailand's approach to digital currency regulation, with the ministry carefully balancing innovation with regulatory compliance. 

The outcome of these discussions could set a precedent for how digital currencies are integrated into Thailand's financial ecosystem, particularly in tourist-heavy regions like Phuket.