New Thai Prime Minister Anutin Charnvirakul could derail crypto in the country

Thailand’s parliament on Friday elected Anutin Charnvirakul, leader of the conservative Bhumjaithai Party, as the country’s new prime minister. The 58-year-old will become Thailand’s third leader since 2023, which for locals, could be a reason to worry rather than relief.

According to local news outlets, Anutin easily passed the 247-vote threshold in the lower chamber. Chaikasem Nitisiri, who was running against him and endorsed by the Shinawatra family, received 118 votes.

Anutin will replace Paetongtarn Shinawatra of the ruling Pheu Thai Party, who was dismissed last month by the Constitutional Court in an ethics scandal just about a year after she took office. Paetongtarn, daughter of former prime minister Thaksin Shinawatra, was found guilty of violating ministerial ethics in a disagreement with Cambodia by the court on August 29.

Leadership changes: Is it bad for crypto in Thailand?

The new Thai PM, locally known as the “cannabis crusader,” is set to lead a minority coalition anchored by pro-establishment parties, including groups that had blocked Move Forward, the predecessor of the People’s Party,  from taking power after the 2023 election. 

His agreement with the People’s Party requires that parliament be dissolved within four months of his swearing-in and delivery of his policy statement.

According to Cogan, the Bhumjaithai Party leader likely earned People’s Party support because he was “more stable” than Pheu Thai, unpopular over its inability to deliver promises.

According to Pheu Thai, domestic spending could increase GDP growth by 5% if all adults were given 10,000 baht through the government’s ambitious digital wallet program.

It was introduced under former Prime Minister Srettha Thavisin, but quickly ran into financial and legal obstacles. A policy committee established in October 2023 refined the plan, setting eligibility limits for recipients and proposing a 500 billion baht borrowing law to finance the project.

Concerns over fiscal regulations killed the borrowing bill, and attempts to fund the program through state-owned banks also failed. By early 2024, the government turned to the national budget, setting aside 122 billion baht in the 2024 budget bill.

On May 19, then-Prime Minister Paetongtarn Shinawatra announced a postponement of the initiative due to “worsening economic conditions” and the President Donald Trump-sponsored US trade tariffs. 

Cabinet approval on June 18 greenlit 50 projects across nearly 9,000 items, totaling 115.37 billion baht. The diversion of funds effectively ended Pheu Thai’s promise, which Cogan says “eroded public trust in the party’s economic leadership.”

The new administration may not outright ban digital assets, but it may retract populist schemes linked to them. “Anutin’s government may abandon policies like the digital wallet scheme for a more pragmatic agenda,” the professor surmised.

After Anutin’s election, the Pheu Thai Party vowed to regroup and push its agenda from the opposition benches. “On all the pending policies, we will return to finish the job for all the Thai people,” the party said in a statement on social media.

Political changes are unlikely to affect Thailand’s TouristDigipay program announced by Finance Minister Pichai on Monday.

According to Cryptopolitan’s late August insight, TouristDigipay is a way for foreign visitors to convert digital assets into baht for travel-related expenses. The program, which will run as an 18-month trial under a regulatory sandbox, is scheduled to begin in the fourth quarter.

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