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Thailand is set to roll out an ambitious pilot project that will allow foreign visitors to convert cryptocurrencies into Thai baht for local spending, an initiative the government hopes will help revive the country’s struggling tourism sector.
It will be launching an 18-month pilot programme for this, as Reuters reported.Unveiled by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, the TouristDigiPay sandbox programme will run for 18 months, starting later this year. The scheme will enable tourists to exchange their digital assets through Thai-based cryptocurrency platforms, with the converted funds stored in online wallet applications for use across the country.Under the programme, visitors will be allowed to convert up to 550,000 baht ($16,949) during their stay. Officials emphasised that the limit was set both to test the system and to prevent potential misuse, including money laundering.Read more: 5 national parks bigger than countries like Spain, Switzerland, or GermanyFinance Ministry permanent secretary Lavaron Sangsnit noted that the cap could be reassessed once the pilot concludes.Bangkok Post reported that for merchants, strict thresholds have also been introduced.
Vendors that complete a “Know Your Merchant” (KYM) verification process can accept up to 500,000 baht per month, while smaller operators are restricted to 50,000 baht.
Crypto as a tourism booster
Thailand, Southeast Asia’s second-largest economy, is banking on the initiative to shore up a key industry that has yet to fully recover from the COVID-19 pandemic.The state planning agency this week revised its 2025 forecast for foreign tourist arrivals down by 10 per cent, projecting 33 million visitors, well below the pre-pandemic record of 39.9 million in 2019.
That year, tourism generated 1.91 trillion baht ($58.86 billion), highlighting just how vital the sector is to the Thai economy.Officials believe the TouristDigiPay scheme could stimulate additional tourist spending by as much as 10 per cent, potentially injecting more than 175 billion baht into the economy.Importantly, the government has been keen to clarify that Thailand is not adopting cryptocurrencies as a means of direct payment.
Instead, the scheme focuses on facilitating smooth conversion into baht.Read more: 10 vegetarian-friendly countries that should be on your travel wishlistThat distinction is crucial. While several countries have experimented with integrating cryptocurrencies into local commerce, Thailand’s approach positions baht as the sole medium of exchange, ensuring the stability of its financial system while still tapping into the growing pool of crypto-savvy travellers.Thailand has long been one of the world’s top tourist destinations, attracting millions with its beaches, temples, food, and nightlife.
But with global travel patterns shifting and competition heating up from neighbours like Vietnam and Indonesia, the kingdom is seeking new ways to differentiate itself.The TouristDigiPay sandbox could be just that. If successful, it may set a precedent for other countries looking to blend tourism promotion with digital finance innovation.For now, all eyes will be on how visitors respond when the project goes live. Will the convenience of crypto-to-baht conversions persuade travellers to spend more freely in Thailand? And could it mark the beginning of a new financial model for tourism in the digital age? Keep reading this space for more updates on this.