Thaksin urges Thailand to adopt Bitcoin and stablecoins, improve economy, reduce public debt, and defend 15% VAT proposal

Thaksin Shinawatra, the former prime minister of Thailand, recently discussed important economic changes. He urged Thailand to adapt to new trends

Former Thai Prime Minister Thaksin Shinawatra has called on the country to embrace Bitcoin and stablecoins in a bid to boost the economy, reduce public debt, and defend a 15% Value Added Tax (VAT) proposal.

In a seminar held at the resort town of Hua Hin on December 13, Thaksin touched upon a wide range of economic issues. He highlighted the proliferation of cryptocurrencies and suggested that Thailand should consider adopting Bitcoin, particularly in tourist hotspots like Phuket and Hua Hin, to enable visitors who own the digital currency to spend it in the country.

Thaksin also discussed the possibility of Thailand issuing stablecoins that are backed by state bonds. According to him, this measure would facilitate the circulation of money without the need for printing additional banknotes to increase the circulating stock. He believes that this initiative could help propel the country's economic growth rate, which is expected to reach 3.5% next year. However, for Thailand to remain competitive within the Association of Southeast Asian Nations (ASEAN), he emphasized the necessity of achieving a GDP growth rate of 4% by 2026.

In response to current issues impacting the Thai economy, Thaksin pointed out that banks are not lending sufficiently and a substantial amount of money has been "sucked out" of the system, leading to a lack of growth in investment. He asserted that the government should inject money into the economy, but cautioned against relying on borrowing to do so. Instead, he highlighted the importance of reducing public debt, a matter that Mr. Thepthai is focusing on as a priority for the Pheu Thai Party.

Thaksin also stressed the significance of private capital and cited the example of flood control in Bangkok. He suggested that the private sector should play a larger role in such projects, especially considering the government's limited resources. Additionally, he expressed concerns about the monopoly in the electricity sector and called for lower prices to benefit the citizens.

Finally, Thaksin addressed the proposed 15% VAT, acknowledging that the suggestion was made prematurely and caused some confusion. However, he defended the tax, stating that it aligns with best practices employed around the world. According to him, if Thailand were to collect the 15% VAT, businesses would be able to reinvest the savings into their operations, ultimately benefiting both the enterprises and the country at large.