Ex-Thailand PM Advocates Stablecoin Adoption for Economic Growth

Thaksin Shinawatra, Thailand former prime minister, has made a strong case for embracing stablecoins and legalizing online gambling as a means to boost the country’s economy. Speaking at an event on January 13, Shinawatra emphasized the untapped potential of crypto-backed tokens and gambling revenue, urging Thai regulators to take swift action.

Highlighting the stability of asset-backed tokens, Shinawatra stated there’s “no risk” in allowing the trade of stablecoins. He proposed piloting crypto payments in Phuket, citing its potential to enhance financial inclusivity and streamline transactions. Meanwhile, his call to regulate and tax online gambling underscored a missed opportunity to generate nearly $4 billion in annual tax revenue.

Shinawatra argued that a controlled ecosystem with a passport-like monitoring system could formalize the industry and curb illegal gambling activities, which currently involve millions of users and massive financial flows.

Thailand Takes Steps Toward Legalization

Shinawatra’s recommendations come amid a significant regulatory shift in Thailand. The Thai cabinet recently approved the Entertainment Complex Business Act, a draft law aimed at legalizing casinos and taxing the underground gambling industry. Inspired by Singapore’s success in integrating legalized gambling into its economy, current Prime Minister Paetongtarn Shinawatra—Thaksin’s daughter—sees the move as a way to enhance tourism and economic output.

The House of Representatives must still sign the bill into law, with no definitive timeline announced. If passed, the legislation would position Thailand as a regional hub for regulated entertainment and gaming industries.

Stablecoins and CBDCs: A Path Forward?

Thaksin Shinawatra’s support for stablecoins aligns with Thailand’s growing interest in digital payments. He urged the Securities and Exchange Commission (SEC) to facilitate stablecoin trading, describing it as an essential step toward modernizing the economy.

Thailand has already taken strides in digital finance. In July 2024, the government distributed $13.8 billion in digital money to 45 million citizens as part of a social benefits program. Earlier that year, the Bank of Thailand completed a pilot project for a retail CBDC, though it has no immediate plans for official issuance.