Thailand Trials Cryptocurrency Transformation for Boosting Tourism Sector
Thailand has recently launched the TouristDigiPay program, a joint effort between the Finance Ministry, Anti-Money Laundering Office (AMLO), and Securities and Exchange Commission (SEC). The program aims to facilitate digital and crypto-to-baht payment conversions for foreign tourists staying temporarily in the country, as a means to boost tourism recovery post-pandemic.
The program operates in a sandbox environment, with monthly spending limits and no direct cash withdrawals. To use TouristDigiPay, tourists must open an account with both a crypto firm and an e-money provider, each regulated by the appropriate agencies. The crypto firms must undergo Know Your Customer (KYC) and customer due diligence checks as set forth by the AMLO.
The SEC noted that merchants will receive all payments in baht. The program addresses the issue of cross-border payments, which have traditionally been slow and costly, by converting crypto to baht immediately. This innovative, carefully regulated approach is designed to attract crypto-savvy travelers and enhance payment convenience.
However, the volatility associated with crypto has hindered it from becoming a more widespread option. Despite this, digital assets have long been considered a potential solution to improve cross-border payments due to their decentralized and secure nature.
Before the pandemic, Thailand welcomed approximately 39.9 million foreign international arrivals, generating around $58.86 billion in revenue. However, the pandemic has caused a significant drop in tourist numbers, with Thailand's state-planning agency lowering its 2025 forecast for foreign visitors by 10%, to 33 million visitors.
The TouristDigiPay program aims to address a 24% drop in East Asian tourists, especially from China, by targeting crypto-savvy travelers and enhancing payment convenience. It builds on Phuket's 2025 pilot and global trends where crypto-payments appeal to a niche market segment.
It remains to be seen whether these programs will have enough impact to help turn around Thailand's tourism struggles. China's Alipay reported a tenfold increase in foreign tourists after the popular digital wallet announced integration with other wallets in the region. However, there are no comprehensive data or independent evaluations yet on how effective TouristDigiPay has been in attracting foreign tourists or improving cross-border payments.
The SEC and AMLO have completed a study on how financial innovation and digital assets could foster both economic and tourism growth in Thailand. Further monitoring and data over the coming months will be necessary to assess the actual effectiveness of the TouristDigiPay program.
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