We all know that we should embrace change. Thailand definitely seems to be taking this advice to heart when it comes to blockchain technology and cryptocurrencies.
A previous announcement by the Bank of Thailand stated that they would be using distributed ledger technology (DLT) to develop and ultimately issue their own Central Bank Digital Currency (CBDC). The first phase of the initiative, known as Project Inthanon, is scheduled to be completed by the first quarter of next year.
Clarity and Transparency
Another way that the country is adopting this technology is through regulation, contrary as that may sound. By providing guidelines and a solid ICO framework, blockchain-based platforms know exactly what they can expect when setting up shop in the country. According to Tech Crunch, it is because of this clear direction that Thailand is enjoying interest from international start-ups.
These new platforms also have a transparent relationship with regulators in the country to ensure that they are adhering to these rules from the very beginning. In this relationship, regulators are also exposed more to the industry in a bid to understand and even capitalize on it. For example, the statement from the Bank of Thailand mentions that Project Inthanon was developed to “raise the Thai financial sector’s technological readiness in adopting new financial technologies to enhance operational efficiencies.”
The statement added:
In this regard, creating an ecosystem conducive for collaborative learning in technology will be an important driving force towards a digital future for the Thai financial sector.
The team at Pundi X is familiar with this type of collaboration. The CEO of the blockchain-based platform, Zac Cheah, said:
I think [the] government is morphing and changing and many governments that we know are not, you know, exactly the ones that we say that are lagging behind. They, in fact, have like people, young or not so young people, that are very knowledgeable about what is happening right now. So in fact, sometimes when we go to core blockchain meetups, we actually see some very core people from the regulatory side [.] They know that this will change the landscape a lot so I think they are trying to think through the, if I may, the ‘tokenomics’ of how they want to get involved.
Thailand Takes Decisive Action
It’s not just the fact that Thailand is actively embracing the industry, but it is also how quickly and efficiently they are doing it. Authorities around the world seem to be playing catch up with crypto when it comes to creating and implementing regulations, even though the industry has been around for nearly 10 years. Thailand seems to have seen its potential and employed a decisive strategy when it came to the future of the technology in the country.
Disruptive technology has been integrated into the country’s financial sector from as early as July last year. Skip to June this year when the government approved the legalization of seven virtual currencies, including Bitcoin. July saw South Korea’s Bithumb announce plans to expand to Thailand, and it was also the month that the ICO regulations were put in place.
Of course, the dark cloud for all of these silver linings is that with the increase in adoption and integration, there is also the risk of an increase in crypto-related cybercrime. However, the country seems to be quite adept at finding solutions to problems, so here’s hoping that this will carry through from regulation to crime prevention.
Do you think Thailand is the world’s next crypto and blockchain hotspot? Let us know in the comments below!
Images courtesy of Pixabay and Shutterstock.
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