Bangkok: “PPRP” has issued a cautionary statement to the government, indicating that the proposed central financial law could severely undermine the credibility of the Bank of Thailand (BOT) and the nation’s financial stability, potentially enabling political entities to manipulate monetary supply at will.
According to Thai News Agency, Mr. Thirachai Phuvanatnaranubala, a former Minister of Finance and current co-chairman of the Policy and Academic Center, held a press conference to express his concerns regarding the draft of the Financial Business Central Act B.E. . He emphasized that the proposed legislation could jeopardize the country’s financial system. He referenced a statement made by former Prime Minister Thaksin Shinawatra at an event celebrating the 50th anniversary of MFC, where Thaksin articulated the Pheu Thai Party’s ambition to transform Thailand into a hub for blockchain and cryptocurrency. The plan involves three key initiatives: the issuance of digital money through a digital wallet project, the establishment of a sandbox in Phuket for the use of cryptocurrency as a medium of exchange, and the issuance of stablecoins, all intended to be operational within three months.
Mr. Thirachai pointed out that implementing these initiatives would require scrutiny under the current legal framework, including BOT’s review of currency and payment system laws. However, he noted the absence of any dialogue between the Pheu Thai Party-led government and the BOT, suggesting a departure from the established legal processes.
Thirachai further highlighted that Thaksin’s remarks suggest the government’s intent to pass the Financial Business Centralization Act B.E. ., which would grant licenses to new financial entities to operate domestically. This act would effectively diminish the authority of the BOT, SEC, and OIC, consolidating regulatory powers within a newly established office responsible for issuing licenses and business regulations.
Mr. Thirachai cautioned coalition party ministers about the potential ramifications of curtailing the power of independent organizations. Such actions could destabilize the financial system by enabling the issuance of digital currency unbacked by tangible assets like gold, which could severely undermine confidence in both monetary policy and the baht’s value.
He also stressed that while the ambition to position Thailand as a blockchain and cryptocurrency hub is commendable, it should be restricted to non-residents and must not infiltrate the domestic market without BOT’s prior approval. Failure to do so could result in a loss of control over the money supply, threatening the stability of the payment system that underpins foreign exchange trading, capital flows, and international trade.
Mr. Thirachai concluded by stating that the PPRP executive committee is acutely aware of the potential risks to the financial system and the global perception of Thailand’s monetary policy. They have resolved to oppose the draft law unless appropriate amendments are made. He affirmed that while the government can leverage blockchain technology and the digital economy, it must not compromise the integrity of the Bank of Thailand and the country’s financial system.
