Pichai leaves the door open for Phuket sandbox on cryptocurrency

Finance Minister Pichai Chunhavajira has hinted that the government could continue the sandbox experimentation to use Bitcoin in Phuket province in a bid to pave the way for cryptocurrency adoption in selected areas of Thailand.

“We are not suggesting replacing existing currencies with Bitcoin,” he said on Thursday. “Using Bitcoin at stores in Phuket should we go ahead with the sandbox means that while the recipient is aware that this currency is being used, they do not receive it directly. Instead, it is transferred through the system following normal financial transaction processes.”

The minister went on to say that there is no risk for those receiving Bitcoin thanks to the clearing process in the financial market, which works in much the same way as when foreign tourists use credit cards to shop in Phuket and make transactions in their currency.

“There are still people who need Bitcoin, and the move would help increase channels for people to use money more effectively,” said Pichai.

The finance minister also dismissed the concern raised by the Bank of Thailand (BOT) regarding the high volatility of cryptocurrencies, stating that Bitcoin will only be used in the sandbox area and not as the country’s foreign reserves.

He added that the BOT could still consider using cryptocurrencies as foreign reserves in the future, but that any such move would be thoroughly studied and discussed, similar to the study that looked at adding Chinese yuan as foreign reserves that Thailand had considered in the past.

The issue of a Phuket cryptocurrency sandbox was raised earlier this week when former Prime Minister Thaksin Shinawatra gave a lecture in Hua Hin, Prachuap Khiri Khan province, and said that Thailand must study cryptocurrencies and continue sandbox experimentation to remain relevant on the global stage.

The father of PM Paetongtarn urged the government to study digital assets because of the current global trend toward digitisation.

He added that the looming threat of the incoming Trump administration’s trade tariffs and Trump’s idea of paying off the national debt with Bitcoin were further reasons to explore and understand the digital economy.