YEREVAN (CoinChapter.com) — Thaksin Shinawatra, Thailand’s former prime minister, emphasized that stablecoin trading carries “no risk” and urged the government to regulate the trade of stablecoins and other tokens backed by tangible assets. Speaking on Jan. 13, Thaksin recommended measures to modernize Thailand’s financial policies through crypto regulation.
He also proposed expanding Thailand’s revenue streams by legalizing online gambling. Thaksin stated that nearly 100 billion baht ($4 billion) in potential tax revenue is being lost annually due to unregulated gambling activities.
Former Thai Prime Minister Thaksin Shinawatra speaks with businessmen ahead of the “Vision for Thailand” event in Bangkok, Thailand, August 22, 2024. Picture taken through glass. REUTERSOnline Gambling Tax Could Yield Billions Annually
At the same event, Thaksin highlighted the significant revenue potential of legalizing online gambling. Thailand’s underground gambling industry involves an estimated 2 to 4 million users, with annual gains and losses totaling 500 billion baht. According to Thaksin, a 20% tax rate on gambling activities could generate more than 100 billion baht ($3 billion) each year.
This recommendation follows the cabinet’s recent approval of the Entertainment Complex Business Act, which would legalize casinos and establish entertainment hubs. The proposed law must still be approved by Thailand’s House of Representatives.
Thaksin suggested a regulatory framework that includes a “passport-type” access system to monitor gambling activities and ensure compliance. He explained,
“We would have like a passport to control who can play.”
Phuket Proposed as Pilot for Crypto Payments
Thaksin Shinawatra also called for Thailand’s Securities and Exchange Commission (SEC) to allow stablecoin trading and facilitate the use of asset-backed cryptocurrencies. He highlighted the potential benefits of adopting stablecoins, suggesting that they could improve economic transactions without introducing volatility.
Phuket Crypto Pilot Launch. Source: The Nation
Thaksin proposed Phuket as a test location for implementing crypto payments, emphasizing the region’s potential for piloting digital currency initiatives. He remarked,
“There will be no risk; it is just another currency in the world.”
Thailand’s Progress in Digital Currency Adoption
Thailand has already taken steps toward integrating digital currencies. In July 2024, the government distributed digital money worth $280 each to 45 million citizens, costing $13.8 billion. This initiative aimed to stimulate economic activity nationwide.
In addition, the Bank of Thailand completed a retail central bank digital currency (CBDC) pilot in April 2024. While there are no immediate plans for an official CBDC launch, the central bank plans to use insights from the pilot to enhance payment systems and explore new areas of application.
Retail CBDC Pilot Report. Source: BOTInfluence of Thaksin’s Political Legacy
Although Thaksin Shinawatra does not hold a position in the current administration, his influence remains significant. His daughter, Paetongtarn Shinawatra, serves as Thailand’s Prime Minister.
Thaksin referenced Singapore’s model, where legalized gambling has contributed to tourism growth and GDP, as an example for Thailand to consider. However, the government has yet to announce a timeline for finalizing the proposed gambling reforms or implementing stablecoin trading regulations.
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