Thailand’s Former PM Advocates for Crypto and Online Gambling Legalization to Boost Revenue

FILE – Former Thai Prime Minister Thaksin Shinawatra arrives ahead of the “Vision for Thailand” event in Bangkok, Thailand, Aug. 22, 2024.

Former Thai Prime Minister Thaksin Shinawatra has called for the legalization of stablecoins and online gambling to foster innovation and significantly increase the country’s revenue streams

In a statement made at an event on January 13, Thaksin highlighted the untapped potential of online gambling, estimating that the Thai government could be missing out on nearly $4 billion (100 billion Thai baht) in tax revenue. According to Thaksin, the Thai government is missing out on almost $4 billion in tax revenue from online gambling. Speaking at the event, he urged Thai authorities to legalize the online gambling ecosystem, Reuters reported.

Thaksin’s remarks came just hours after the Thai Cabinet approved a draft law — the Entertainment Complex Business Act — which seeks to legalize casinos and gambling within the country. The proposed law would also allow the creation of entertainment complexes and provide a framework for taxing the current illicit gambling activities.

“Online gambling has two to four million Thai users with savings of 300 billion baht and gains and losses of about 500 billion per year. If we can tax 20% […] we would get more than 100 billion per year.”

Thaksin Shinawatra

Crypto, Stablecoins, and Thailand’s Digital Economy

Thaksin also took the opportunity to recommend the adoption of stablecoins and other non-volatile cryptocurrencies in Thailand’s economy. He suggested that the country’s Securities and Exchange Commission (SEC) should consider allowing the trade of stablecoins, particularly those backed by tangible assets, as a step toward modernizing Thailand’s financial ecosystem.

In particular, Thaksin pointed to Phuket as a possible location for pilot programs to test cryptocurrency payments, emphasizing that it would be “just another currency in the world” with minimal risk. This proposal aligns with growing interest in digital currency adoption in the country, particularly after the Thai government’s recent initiatives.

Digital Baht and Central Bank Digital Currency (CBDC)

In July 2024, Thailand launched a social benefits program distributing digital money to 45 million citizens, a move designed to boost the economy. Each eligible individual received approximately $280, with the total cost to the government amounting to $13.8 billion. Additionally, the Bank of Thailand completed a pilot program for a retail central bank digital currency (CBDC) in April 2024, exploring the potential of digital money in retail transactions.

Though the central bank has stated there are no immediate plans to officially launch a retail CBDC, it intends to apply the insights gained from these pilots to enhance Thailand’s payment systems in the future.

A Bold Future for Thai Finance and Innovation

Thaksin’s proposals underscore his belief in embracing new technologies to fuel Thailand’s economic growth. Whether through legalized gambling or cryptocurrency, his vision suggests that the country could benefit from a more innovative and regulated approach to these emerging industries. With ongoing government initiatives in the digital currency space, Thailand may be on the brink of a transformative shift in its financial landscape.

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