Pinprajat Chakkaphak reveals digital assets The future of investment

Pinpracha Chakkaphak
Chief Executive Officer, ERX Company Limited

digital assets The future of investment

If talking about investing in digital assets Many investors probably think of “Bitcoin” first and often have questions about whether investing in digital assets is safe or can be invested like other types of assets. Including to what level is Thailand ready to support investment in digital assets that many people often refer to as the investment of the future?

“I already know about digital assets. Whether it's cryptocurrencies or digital token and from work experience It made me see many trends that are happening at present. I really believe that Digital assets are the future, even though legally in Thailand digital assets It will still be classified as an alternative asset. But I believe that in the future we will not have alternative assets called digital assets. Because other types of assets will become digital, all running on the blockchain instead. Whether it is stocks, derivatives, bonds or even money.

The above sentence is the perspective of Pinprajat Chakkaphak, Chief Executive Officer of ERX Company Limited, on the occasion of a special interview. bank finance of the vision for digital assets and the trend of investments around the world that are beginning to shift from traditional forms of investment Towards investing through digital channels using blockchain as the basic technology

From investment banker to web trading executive
To lay the foundation for future investment

Before acting as Chief Executive Officer Or the CEO at ERX, Pinprajat said that he was originally not interested in or knowledgeable about digital assets before. Because the job that was initially targeted was investment banking (IB), I chose to study in the MBA program. in Finance, Investments and Risk Management at Skidmore College, including a Master of Science-Finance from Case Bussiness school.

After graduation, Pinprajat began working at J.P. Morgan & Co., as well as working in the office of Finance Minister Yukorn Chatikawanich as Minister of Finance (20 December 2551 - 9 August 2554) before Moved to work as a financial advisor at UBS Bank and BNP Paribas in Hong Kong for 8 years, and finally became Director of Business Development at Oriente.

“Working in the Office of the Minister of Finance I was young then. So I learned from talented people around me, and in the team there were many people who had worked in investment banking before, so they got ideas from working during that time.”

As for the reason why Pinprach chose Hong Kong to work, it is because it is viewed as one of the most important economic cities in the world. Various experiences What you gain from your work reveals a broader and more comprehensive financial vision. and also gain connections that are broader than working within the country

Over the course of more than 10 years of work, Pinprajat said that he has seen the trend of digital assets gradually growing around the world. In addition, the digital trend Transformation that makes traditional transactions obsolete Therefore starting to become interested in investing in digital assets.

“I think that in the future, other assets will all be tokenized through blockchain technology. Investing in the future is therefore very interesting. Investment portfolios will no longer be monotonous with just the same securities.”

From the above reasons As a result, Pinprajat had the idea to start his own company using a database of people in social networks to calculate information. But in the end it became a digital token trading website. As a result, he is currently accepting the position of CEO at ERX, which promotes the strength of the mechanism that helps protect investors and aims to be the number 1 digital token trading website in Thailand and the leader in the Asian region.

digital assets
It's not always just cryptocurrencies.

When Pinprach entered the digital asset world What surprised the industry was that ERX was the first exchange to offer digital tokens in Thailand instead of cryptocurrencies. which is becoming popular in the market

ERX received a license from the Securities and Exchange Commission (SEC) in July 2563.

As for the reason that we only provide digital token trading services? Pinprajat said that because digital tokens are an investment form that is referenced to general assets. Makes it easy for general investors to understand. including new investors There is also a security mechanism and investor protection for every token traded through blockchain technology. and can also identify the owner This is different from Bitcoin where the identity of the holder cannot be determined. Anyone who has an e-wallet and has bitcoins in it is considered the owner. But the assets traded on ERX's board are more like stocks, that is, stocks have a registrar. Tokens to trade on the ERX board Most will also have a registrar. And the value comes from the underlying assets that are already on the market today.

“If we lose money The person who collects it becomes the owner. But what if we lose our share certificate? We can go to the registrar to prove ownership of the share certificate. The same goes for what to trade on ERX. If something goes wrong, we can recover it from the blockchain.”

Pin Prajat also explains the various types. There are currently two forms of tokens as follows:

1. Investment Token, which determines the right to invest in projects or businesses similar to securities or investment units. or have real assets as underlying assets Therefore, the risk of this token is replaced by the risk of the underlying thing. And investors can understand it easily. You can choose to invest in the industry you like. Because investors will invest in things they already know through new technology. Makes it easier for investors to accept

2. Utility Tokens are tokens that people have assigned rights to. The holder will receive rights to various goods and services. or other rights As specifically specified, such as accumulated points from credit cards But tokens currently in the form of investment tokens can also be used as utility tokens. which depends on the conditions of the token issuer The highlight of investment tokens that will be traded on the E.R.X. board is that they have lower operating costs. Can divide more investment units Therefore giving investors more diverse investment options. and giving opportunities for those with small amounts of money to invest

Overview of the growing industry
reflects increasing acceptance

For the overall picture of the digital asset industry, Pinprajat has the view that if Thailand is compared with Hong Kong. Hong Kong is quite alert. Because there are starting to be a lot of trading websites. If compared to a journey For Thailand, it is considered that we are moving forward. Because now there is an ecosystem, a trading website, and a license. But what we don't have is the first token issued under Thai law. Right now, Thai people still think that this technology is still new. Because digital assets have started to play a real role in Thailand in the past 2-3 years, but the past period has proven that this technology can really go further.

Pinprajat added that 2-3 years ago, in Thailand, laws and controls were not as comprehensive as they are today. As a result, the image of investing in digital assets is low safety. General investors therefore do not dare to mess with digital assets. But nowadays it is beginning to be controlled. There is more clear licensing. Making this industry start to grow continuously. This type of expansion will be the same all over the world, not just in our country.

“Digital assets are like driving in heavy fog. We didn't dare drive fast. But if we turn on the light, we can see farther away. There is more confidence. We dare to drive faster. Therefore, car lights are like laws that control these matters. As the law became clearer There is a clear caretaker. more safety Confidence from investors follows and the market grows.”

However, Pinprajat sees that even though the overall digital asset industry in Thailand is growing, But on the other side I have to admit that some investors are still afraid because they can make a lot of money. and is still considered a high-risk asset. But on the other hand Investors who like risk are ready to invest. Both groups are neither wrong nor right. Because the person who directs and controls will be the one who adjusts the balance at this point.

Investing in digital assets
The important point is safety.

Currently, the classification of digital assets is not very different. However, it makes investors or most people view digital assets as a type of asset. Pin Prajat suggested that For those interested in investing in digital assets, they should not view them as just an alternative investment. Because in reality, digital assets are investments that come with blockchain technology.

“When the internet came, many people didn't know what it was. In the beginning, people started using email to send messages to each other. Start using the web browser. It has started to develop gradually until it has become the current Internet that can do many things. The Internet is a layer of technology that is the base for us to continue to develop.”

Pin Prajat commented that Blockchain is like the internet, that is, it is a basic technology that can be further developed in many ways. Even though at present it may not be possible to see what blockchain can do, It's like the internet in its early days, 20 years ago when talking about the internet. People will understand that it is for sending and receiving emails. But nowadays, people can do banking transactions over the internet and it has become normal.

Blockchain is no exception. If we talk about blockchain today People will think about digital assets. Cryptocurrency and Bitcoin, which from the current trend shows that in the next 3-5 years, identity verification Personal identification, vehicle registration, house registration, or even traditional investments will increasingly be placed on the blockchain.

“We don't have to learn how the technology works. Because in the end, what investors want is returns. Therefore, the important thing that investors need to know is safety and confidence. If you want to invest in blockchain, you should find a service provider with high credit. There should be a supervisor or a valid license.”

As for investing in digital assets Pinprach views that today investing in digital assets Suitable for investors who are ready to take high risks. Because if we talk about only digital assets that are not cryptocurrencies. It can be seen that most of them will begin to use blockchain technology to invest in projects that are in the nature of infrastructure development. Such as making digital currency (CBDC), using it as a database to store a person's identity. such as ID card, driver's license, medical history Investors who will invest directly in these matters will see that the budget is high. It requires a lot of research, it takes time and there is a high risk. But when it develops to a certain point, the industry will start to become stagnant. Reduced risk And it will become as common as other forms of investing.

Follow the People column in the Finance and Banking Journal. January 2564 issue, issue 465, on leading newsstands nationwide and in digital format: https://goo.gl/U6OnIi