The new Thai Prime Minister could change the course of cryptocurrencies in the country.

The Thai parliament elected Anutin Charnvirakul, leader of the conservative Bhumjaithai Party, as the country's new prime minister this Friday. The 58-year-old politician will become the third leader of Thailand since 2023, marking a significant change in the regulatory landscape that could impact the digital asset sector.

According to local media, Anutin easily surpassed the threshold of 247 votes in the lower house. His opponent, Chaikasem Nitisiri, backed by the Shinawatra family, received 118 votes.

Anutin will replace Paetongtarn Shinawatra of the ruling Pheu Thai Party, who was ousted last month by the Constitutional Court in an ethical scandal, just a year after taking office. Paetongtarn, daughter of former Prime Minister Thaksin Shinawatra, was found guilty of violating ministerial ethics in a disagreement with Cambodia on August 29.

Changes in leadership: A risk for cryptocurrencies in Thailand?

The new Thai prime minister, locally known as the "cannabis crusader," will lead a minority coalition backed by pro-establishment parties, including groups that blocked the Move Forward Party, predecessor of the People's Party, from taking power after the 2023 elections.

His agreement with the People's Party requires that the parliament be dissolved within four months of his taking office and the presentation of his political statement.

According to Cogan, the leader of the Bhumjaithai Party probably gained the support of the People's Party because it was "more stable" than Pheu Thai, which is unpopular for its inability to fulfill promises.

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

This program was introduced under former Prime Minister Srettha Thavisin, but quickly faced financial and legal obstacles. A policy committee established in October 2023 refined the plan, setting eligibility limits for beneficiaries and proposing a loan law of 500 billion baht to finance the project.

Concerns about tax regulations ended the loan bill, and attempts to fund the program through state banks also failed. In early 2024, the government turned to the national budget, allocating 122 billion baht in the 2024 budget bill.

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

The cabinet's approval on June 18 greenlit 50 projects with nearly 9,000 items, totaling 115.37 billion baht. The diversion of funds effectively ended with the promise from Pheu Thai, which according to Cogan "eroded public confidence in the party's economic leadership."

The new administration may not directly ban digital assets, but it could roll back populist schemes linked to them. "The Anutin government could abandon policies like the digital wallet scheme for a more pragmatic agenda," conjectured the professor.

After Anutin's election, the Pheu Thai Party promised to regroup and push its agenda from the opposition benches. "On all pending policies, we will return to finish the work for all Thai people," the party said in a social media statement.

The TouristDigipay Program Continues Despite Political Changes

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

TouristDigipay is an initiative for foreign visitors to convert digital assets to baht for travel-related expenses. The program, which will operate as an 18-month trial under a regulatory sandbox, is set to begin in the fourth quarter.

This regulatory approach represents a balance between innovation and consumer protection, allowing Thailand to explore practical applications of blockchain technology while maintaining adequate safeguards against potential financial risks.

Emerging market regulation experts believe that these pilot programs offer a gradual implementation model that could be adopted by other Southeast Asian countries interested in integrating digital assets into their economies without compromising financial stability.