Tourists in Thailand can now swap cryptocurrency for local money.
Thailand has taken a significant step towards embracing digital innovation in its tourism sector with the launch of the TouristDigiPay program. The initiative, announced on August 18, 2022, allows international tourists to utilize cryptocurrency during their stay in the country, converting digital assets into Thai baht for local spending.
How the Program Works
Tourists wishing to use cryptocurrency within the TouristDigiPay program must first convert their digital assets into Thai baht through licensed platforms. To do this, they need to open accounts with both a digital asset company and an electronic money provider, which are regulated by the Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT).
The converted baht is then stored in an e-wallet, which can be used for QR code payments at participating merchants. It's important to note that direct cryptocurrency payments are prohibited under Thai law, so this method bypasses such transactions.
Regulatory Oversight and Security Measures
The TouristDigiPay program operates within a regulatory sandbox, ensuring oversight from several key Thai authorities, including the Ministry of Finance, SEC, Anti-Money Laundering Office, BOT, and the Ministry of Tourism and Sports. This setup helps manage risks associated with digital transactions.
To mitigate risks, participants must undergo Know Your Customer (KYC) and Anti-Money Laundering (AML) checks as part of the process. To prevent misuse, withdrawals are blocked until the tourist closes their account, ensuring the wallet cannot be used for unauthorized cash transfers.
Spending Limits
There are monthly spending limits imposed on crypto-related transactions. For larger merchants with card terminals, the limit is 500,000 baht (approximately $15,400), while smaller entrepreneurs are capped at 50,000 baht (approximately $1,500).
The Future of Cryptocurrency in Thailand's Tourism Industry
By integrating cryptocurrency into the tourism sector, Thailand aims to boost economic recovery and attract tech-savvy travelers, positioning itself as a leader in Southeast Asia's digital innovation landscape. The implementation of the TouristDigiPay program may impact the usage and acceptance of cryptocurrencies in Thailand's tourism industry.
It's important to note that the TouristDigiPay program does not specify which specific cryptocurrencies are accepted. The details of how the exchange rate between cryptocurrency and Thai baht will be determined are not provided either.
The TouristDigiPay program will run until February 2027, providing international tourists with a unique opportunity to explore the digital frontier of Thailand's tourism industry.
The TouristDigiPay program in Thailand requires international tourists to open accounts with both a digital asset company and an electronic money provider, regulated by the Securities and Exchange Commission (SEC) and the Bank of Thailand (BOT), to convert their cryptocurrency into Thai baht for local spending. The Ministry of Finance, SEC, Anti-Money Laundering Office, BOT, and the Ministry of Tourism and Sports oversee the program to ensure regulatory oversight and security measures, including Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.
