The Ministry of Digital Economy and Society has indicated that it will support blockchain as part of efforts to promote the digital economy in Thailand.
Digital Economy Minister Chaiwut Thanakamanusorn announced during a recent visit to the headquarters of Bitkub, the local exchange for cryptocurrencies.
Thailand is working to drive digital transformation and utilize innovation to become a cutting-edge economic powerhouse. The country’s digitization journey begins with the “Thailand 4.0” economic model which concentrates on important advancements and digital improvements to enhance the quality of life, productivity and efficiency of the Thai people.
The Digital Economy is expected to play a critical role in every industrial sector in Thailand and is estimated to contribute 25% to Thailand’s GDP by 2027.
Thailand 4.0 is an economic model that aims to unlock the country from several economic challenges resulting from past economic development models which emphasize agriculture (Thailand 1.0), light industry (Thailand 2.0), and advanced industry (Thailand 3.0). These challenges include “a middle-income trap”, “an inequality trap”, and “an imbalanced trap”.
Four Objectives of Thailand 4.0
1. Economic Prosperity: to create a value-based economy that is driven by innovation, technology and creativity. The model aims to increase Research and Development (“R&D”) expenditure to 4% of GDP, increase economic growth rate to full capacity rate of 5-6% within 5 years, and increase national income per capita from 5,470 USD in 2014 to 15,000 USD by 2032.
2. Social Well-being: to create a society that moves forward without leaving anyone behind (inclusive society) through the realization of the full potential of all members of society. The goals are to reduce social disparity from 0.465 in 2013 to 0.36 in 2032, completely transform to social welfare system within 20 years and develop at least 20,000 households into “Smart Farmers” within 5 years.
3. Raising Human Values: to transform Thais into “Competent human beings in the 21sth Century” and “Thais 4.0 in the first world. Measures under Thailand 4.0 will raise Thailand’s HDI from 0.722 to 0.8 or the top 50 countries within 10 years, ensuring that at least 5 Thai universities are ranked amongst the world’s top 100 higher education institutions within 20 years.
4. Environmental Protection: to become a livable society that possesses an economic system capable of adjusting to climate change and a low carbon society. The targets are to develop at least 10 cities into the world’s most livable cities, reduce terrorism risk, and increase the proportion
After meeting with the executives of the exchange, Minister Chiwut said it was apparent that the crypto sector is growing and will greatly contribute to Thailand’s digital economy. Additionally, he assured that the administration will continue to support the sector going forward.
Bitkub founder Jirayut Srupsrisopa said the exchange is planning to build a solid foundation for Thailand’s digital economic infrastructure within the next five years. He also welcomed the government’s support for blockchain technology, which serves as the basis for other emerging advances such as augmented reality, virtual reality, and the metaverse.
Bitkub Coin (KUB) is a native and utility coin of the Bitkub Chain that is used to fuel, operate, and govern the Bitkub Chain ecosystem. KUB has multiple utilities such as paying transaction fees, redeeming trading fee credit on Bitkub Exchange, and also transferring KUB to one another.
Bitkub was founded in 2018 and was among the first exchanges to receive a digital asset license from the nation’s Securities and Exchange Commission, in 2019. It is the largest crypto exchange in Thailand, with a 90% share of crypto transactions based on 2021 data from regulated exchanges.