The Thai government will launch a new policy today (18th), allowing foreign travelers to exchange their cryptocurrencies for Thai baht for payments during their travels. This initiative, named 'TouristDigiPay', is seen as a response to the decline in the tourism industry, especially the sharp decrease in Chinese tourists.
According to Thai media (The Nation), details of the new measures will be announced at a press conference on Monday, hosted by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, along with senior officials from the Ministry of Finance, SEC, AMLO, and the Ministry of Tourism and Sports.
Cryptocurrency exchange for Thai baht, designed specifically for foreign tourists
According to the plan, if foreign travelers wish to convert cryptocurrency into Thai baht for consumption, they must open an account with a digital asset service operator regulated by the Thai SEC and connect to an electronic money service provider regulated by the Bank of Thailand (BOT).
This service is only available to short-term foreign tourists, and a real-name authentication (KYC/CDD) process must be completed according to AMLO guidelines before use, with a usage period not exceeding 18 months, which can be extended at discretion.
'TouristDigiPay' will first be included in a 'regulatory sandbox' trial to prevent cryptocurrencies from directly becoming payment tools while ensuring risk management.
After the currency exchange, travelers can directly use Thai baht through electronic payment methods, such as the commonly used QR Code scanning payments.
Central Bank to create 'Traveler Wallet'
Naphongthawat Phothikit, Senior Director of the Payment Systems and Financial Technology Policy Department of the Bank of Thailand, pointed out that the central bank is collaborating with electronic payment providers to develop a dedicated 'Traveler Wallet' for foreign tourists. This service will prioritize support for travelers from countries that have not yet established cross-border QR payment connections with Thailand.
The initial version will primarily use electronic payments for the conversion between cryptocurrency and Thai baht; in the future, it will also directly connect to overseas-issued credit cards and financial cards to enhance convenience of use.
Set consumption limits to prevent money laundering risks
To avoid financial crime risks, such as money laundering, Thai authorities will set spending and transaction limits for the TouristDigiPay service:
Large merchants (with card machines): Monthly consumption limit of 500,000 Thai baht per account;
General retail merchants: Monthly consumption limit of 50,000 Thai baht per account.
In addition, industries identified as high-risk by AMLO will be prohibited from using this payment service; traveler accounts cannot withdraw cash directly from 'rechargeable balance' and can only do so in a lump sum when closing the account.
Recently, the Thai SEC completed a public consultation on 'How financial innovation and digital assets can support economic and tourism development', collecting opinions until August 13. This new policy is seen as a result of that discussion.
As global tourism recovery lacks momentum, especially with fewer Chinese market tourists than expected, Thailand is urgently seeking new solutions. Through the 'cryptocurrency to baht' policy, authorities hope to attract international tourists familiar with digital assets, accelerating capital inflow and revitalizing the tourism market.
Analysts expect that if effectively implemented, 'TouristDigiPay' could increase tourism spending related to cryptocurrencies by 10% to 15%, enhancing Thailand's leadership position in the digital finance and blockchain integration sectors in Southeast Asia.
"Thailand will launch 'TouristDigiPay': Allowing travelers to use 'cryptocurrency to exchange for Thai baht' for tourism spending" was first published on (Blockke).
