Thai Government Launches Crypto-to-Baht Scheme to Boost Tourism
The new initiative, dubbed 'TouristDigiPay', will allow visitors to convert cryptocurrency into Thai Baht for spending, with a monthly transaction limit of 500,000 baht.
- The Thai government is launching a "TouristDigiPay" scheme to boost tourism by allowing foreign visitors to convert cryptocurrency into Thai Baht for electronic payments.
- To participate, tourists must open accounts with regulated digital asset and e-money providers, passing strict Know Your Customer (KYC) and anti-money laundering checks.
- The program operates within a regulatory 'sandbox' and includes safeguards such as monthly spending limits and a prohibition on direct cash withdrawals to prevent financial crime.
The Thai government is set to launch a new scheme on Monday, August 18, to revitalise its tourism industry by allowing foreign visitors to convert cryptocurrency into Thai Baht for payments.
The initiative, named "TouristDigiPay," is a direct response to a significant slowdown in tourism this year, primarily due to a decline in visitors from China.
The details of the programme will be unveiled at a press conference led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, alongside key officials from the Finance Ministry, the Securities and Exchange Commission (SEC), the Anti-Money Laundering Office (AMLO), and the Ministry of Tourism and Sports.
The concept of using cryptocurrency to stimulate tourism has been under continuous review by the government.
The SEC recently completed a public consultation on the use of financial innovation and digital assets to support economic and tourism growth, with the feedback period closing on August 13.
Under the new regulations, foreign tourists wishing to convert digital assets into baht for spending must open an account with a digital asset business and an e-money provider, both of which are regulated by the SEC and the Bank of Thailand (BOT) respectively.
The scheme will operate within a regulatory 'sandbox' to ensure proper oversight and risk management, particularly to prevent the direct use of digital assets as a means of payment.
Only foreign tourists temporarily staying in Thailand will be eligible to use the service.
Participants must undergo stringent Know Your Customer (KYC) and customer due diligence (CDD) checks, in line with AMLO’s criteria.
The service will enable tourists to exchange their digital assets for baht and make electronic payments, such as through QR code scanning.
According to Naphongthawat Phothikit, a senior director at the BOT’s Payment Systems and Financial Technology Policy Department, the central bank has been working with e-money service providers to develop a "Tourist Wallet" for foreign visitors.
This service will facilitate QR code payments, particularly for tourists from countries without existing cross-border QR payment agreements. The Tourist Wallet will initially function as an e-money system for currency conversion, with future plans to link it directly to foreign debit and credit cards.
To mitigate the risk of financial crime, such as money laundering, transaction limits will be in place. For merchants with card terminals, the monthly spending limit will be 500,000 baht per account.
For small, general merchants, the limit will be 50,000 baht per month. Transactions will be prohibited at businesses deemed high-risk for money laundering under AMLO guidelines. Furthermore, tourists will only be able to withdraw money upon closing their accounts, and not as cash based on their top-up balance.
