Thailand is introducing a new initiative called TouristDigiPay that will enable international tourists to exchange cryptocurrency for Thai baht and use it for payments throughout the country. This could mark a significant advancement in the integration of digital assets into the country's economy.
TouristDigiPay Initiative
The new program will be announced at a press conference led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira. The event will include participation from leaders of the Finance Ministry, the Securities and Exchange Commission (SEC), the Anti-Money Laundering Office (AMLO), and the Ministry of Tourism and Sports. This project has been under discussion for some time and stands as one of the first outcomes of recent SEC consultations regarding the use of digital assets to support both the economy and tourism.
How TouristDigiPay Works
Foreign visitors interested in utilizing the service must open accounts with an e-money provider and a digital asset company that are licensed by the SEC and the Bank of Thailand. The program will operate within a regulatory 'sandbox', meaning it will initially be tested under close monitoring to ensure safety. Tourists will exchange their cryptocurrencies for Thai baht and will be able to make purchases via electronic payments, such as QR code scanning, which is already widely used in the country.
Spending Limits and Potential Challenges
Visitors using the new service will be subjected to spending limits, ranging from 50,000 to 500,000 baht per month. Authorities assert this will minimize risks, yet concerns arise that it might deter high-spending tourists. Practical barriers may also surface if the KYC process is viewed as cumbersome or slow, leading visitors to opt for alternative payment methods. Additionally, local businesses will need training on the system's operations to facilitate smooth onboarding.
The TouristDigiPay initiative reflects Thailand's effort to strike a balance between emerging technology and stringent regulations. If successfully implemented, this payment system could attract tech-savvy travelers.
