4 factors that may lead to explosive use of Bitcoin in Thailand

Thailand has the best ingredients for bitcoin success — a large number of foreign tourists, multiple foreign exchange inflows and tech-friendly banks.

So what is the catalyst needed for Bitcoin to succeed in Thailand?

Highly dependent on tourism

Thailand is a great country for tourism, and tourism contributes (directly and indirectly) more than 19% of the country's annual gross domestic product (GDP). More than 25 million tourists visit Thailand each year, spending more than $40 billion.

Tourism accounts for 6% of the country's jobs, and a large part of the country's informal sector is funded by taxes generated by foreign tourists.

Increase in money changers

In addition to the Thai Baht, some establishments in Thailand also accept other foreign currencies such as the US dollar, etc. However, foreign tourists are required to exchange their legal tender into Thai Baht for daily use.

There are many currency exchange booths (especially in tourist areas) where you can exchange foreign currency into Thai Baht. Using an ATM/credit card is also an option, but this will incur additional fees (withdrawal fee, plus foreign exchange surcharge).

Banks’ investments in technology include blockchain

Thai banks, like their global peers, have been investing more in technology to stay competitive. SCB Digital Ventures, a unit of Siam Commercial Bank, was one of the investors in Ripple’s Series B funding round in September 2016.

Thai Commercial Bank has more than doubled its technology budget to 15% of profits from 7% last year.

Government stance on Bitcoin

Bitcoin is a good fit for Thailand, given the influx of multiple foreign currencies into the country. The success or failure of Bitcoin in Thailand will depend on the government’s attitude towards cryptocurrencies.

The Bank of Thailand has warned users in the past (2013) about the dangers of using Bitcoin (given the lack of existing laws), but cryptocurrencies continue to thrive.

There are two Bitcoin exchanges in Thailand (bitcoin.co.th and coins.co.th) that have payment options from Thai banks including Bangkok Bank and Standard Chartered Bank. It is clear that the Thai government’s attitude towards Bitcoin could be a catalyst for Bitcoin to flourish in Thailand.

Original link: 4 Reasons Bitcoin Usage Could Explode in Thailand

Original author: Jacob J

Media source: Cointelegraph

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