Thailand's new prime minister takes office: encryption prospects clouded

The Thai Parliament on Friday elected conservative leader Anutin Charnvirakul of the “Universal Thai Party” as the new Prime Minister. The 58-year-old politician becomes Thailand’s third leader within a year, which probably isn’t good news for ordinary Thai people.

Local media reported that Anutin easily secured 247 votes in the lower house, far exceeding the necessary threshold. His opponent, Chakkrasen Nititham, supported by the Sinawatra family, received only 118 votes.

Anutin will succeed the ousted Pheu Thai Party Prime Minister Prawit Wongsuwan. Prawit was removed by the Constitutional Court after just one year in office over alleged moral scandals. The court found that she violated ministerial ethical standards while handling disputes with Cambodia. As the daughter of former Prime Minister Thaksin, her departure seems to continue the political struggles of the Sinawatra family.

Cryptocurrency Future Under Political Change

The new Prime Minister, known locally as the “Marijuana Fighter,” will lead a minority coalition composed of conservative establishment parties that previously blocked progressive parties from gaining power after the 2023 elections. Ironically, he gained support from the People’s Party on the condition that the parliament be dissolved within four months of swearing in.

Analysts believe Anutin’s support from the People’s Party may be because he is considered more stable than the Pheu Thai Party, which has struggled to fulfill its promises. The Pheu Thai Party previously claimed that distributing digital wallets with 10,000 Thai baht to all adults could boost GDP rise by 5%, but this ambitious project quickly ran into financial and legal difficulties.

The plan, proposed by former Prime Minister Srettha Thavisin, faced a series of setbacks: the borrowing bill failed, attempts to finance through state-owned banks fell through, and ultimately, 122 billion Thai baht had to be cut from the national budget. In May, Prawit even delayed the plan citing “deteriorating economic conditions.”

The cabinet ultimately approved nearly 9,000 projects totaling 115.37 billion Thai baht, effectively ending the promises made by the Pheu Thai Party and severely undermining public trust in the party’s economic leadership.

I believe the new government, while unlikely to completely ban digital assets, may abandon populist plans related to them. Anutin’s government is probably to discard policies like digital wallets and shift toward a more pragmatic agenda.

Following Anutin’s election, the Pheu Thai Party vowed to reorganize its coalition and push its agenda in opposition seats, claiming it will “serve all Thai people.” However, I remain skeptical about whether this political rhetoric will translate into real action.

It’s worth noting that the political change might not affect Finance Minister Pichaay’s recent announcement of the TouristDigipay plan. This project allows foreign tourists to swap digital assets for Thai baht for travel expenses, scheduled to launch in the fourth quarter as part of an 18-month regulatory sandbox trial. This may be the only remaining hope for Thailand’s crypto sector.

Under this “Marijuana Fighter,” Thailand’s cryptocurrency policies are likely to become more conservative and unpredictable. For crypto enthusiasts and investors, Thailand may no longer be Southeast Asia’s digital asset paradise.