First of all, it is important to explain that Bitcoin is merely one application of a technology called blockchain. Blockchain represents a revolutionary shift in the global fintech landscape, as this technology allows us to convert various assets into digital currency and facilitates free trade without the need for intermediaries, thanks to individuals in the system who verify transactions. These individuals are referred to as Miners.

The impact on the Thai and global economies in the future will be significant.

1. Money transfers and exchanges will become faster and more convenient.

With drastically reduced transaction fees, selling goods to people abroad will become much easier, even if the buyer does not have a bank account. Furthermore, lower fees and the ability to break transactions into smaller parts will enable micro-sales, such as offering music streaming by the second.

2. Everyone will have access to financial services.

Due to limitations such as the nearest bank branch being too far away or the inability to open a bank account due to insufficient financial documentation, these individuals will now be able to enter the financial system, deposit money, and apply for loans. Access to funding and financial services will help accelerate economic growth, as these financial constraints often hinder the establishment of small businesses. In the future, if technology allows more people to access funding, it will make starting a business easier.

3. Smart contract technology

will enhance the reliability of contracts, such as employment agreements or sales contracts, including real estate transactions, while also reducing costs.

smart contracts are programmed to execute transactions only when certain conditions are met. For example, funds must be transferred first, and the system verifies that the transfer was successful before transferring ownership. In the case of an employment contract, a bonus will be paid only if the employee meets performance targets. This technology will simplify business negotiations and eliminate the possibility of fraud.

4. Data storage will become more systematic and accessible.

For instance, our health data, which is stored by various hospitals, currently requires us to request copies from them. However, with blockchain technology, we can centralize data storage, ensuring that this information cannot be altered, making it easier and more reliable to access.

These technologies will enhance the efficiency of economic activities, allowing everyone in the economic system to access financial services at lower costs.

Moreover, the reliability of contracts in the future will increase, and costs will decrease, making it less necessary to hire lawyers for drafting contracts. Data storage for both public and private sectors will also become easier and more trustworthy, making it harder to forge.

If Thailand can develop these technologies, it will significantly boost economic growth and enhance competitiveness with countries worldwide. Historically, we have been slow to adapt to technology, allowing other nations to surpass us.

This time, if we can harness this trend and benefit from it, we will enhance our competitive capabilities.

For example, consider the emergence of the internet around 1990. At that time, no one knew about the internet, but those who recognized its potential were able to create massive businesses like Google, Amazon, Facebook, and many other global giants.

I believe that at this point, Bitcoin and blockchain are technologies poised to change the world at a level comparable to the impact of the internet in the past.

Dr. Tanapoom Damraks, CFA.

Article by Terra BKK

Dr. Tanapoom Damraks, CFA. Email: [email protected]