Amid a post-pandemic tourism slowdown, Thailand is launching an 18-month program to test whether crypto payments can help draw more foreign visitors.
Before COVID-19, Thailand welcomed about 39.9 million foreign international arrivals, generating roughly $58.86 billion in revenue. However, Southeast Asia’s second-largest economy has struggled to attract visitors in the subsequent years. Thailand’s state-planning agency recently lowered its 2025 forecast by 10%, to 33 million visitors.
To boost momentum, Thailand is preparing to launch a “TouristDigiPay” program, which will allow foreign tourists to convert cryptocurrencies into Thai baht when making purchases in the country.
The project is a joint effort between Thailand’s Finance Ministry, Anti-Money Laundering Office (AMLO), and Securities and Exchange Commission (SEC), which recently completed a study on how financial innovation and digital assets could foster both economic and tourism growth.
A Welcome Addition
Although crypto conversion will likely be a welcome addition for many tourists, using the system will require some prior planning.
Those who want to utilize TouristDigiPay must open an account with both a crypto firm and an e-money provider, each regulated by the appropriate agencies. These firms must also undergo Know Your Customer and customer due diligence checks as set forth by the AMLO.
To provide additional safeguards, TouristDigiPay will operate in a sandbox environment with monthly spending limits and no direct cash withdrawals. These guardrails are designed to prevent digital assets from being used to directly pay for goods or services. The SEC noted that merchants will receive all payments in baht.
Only foreign tourists who are staying in Thailand temporarily can use the service. Once approved, they will be able to exchange their digital assets for baht and make electronic payments, including those that use QR code scanning.
Relieving Travel Stressors
Being able to complete accurate and secure payments is one of the common stressors for travelers abroad. Offering these visitors a way to pay in the local currency can make an impact. China’s Alipay reported a tenfold increase in foreign tourists after the popular digital wallet announced integration with other wallets in the region.
Digital assets have long been a contender a potential solution to improve cross-border payments because they are decentralized and secure. However, the volatility associated with crypto has hindered it from becoming a more widespread option. Programs like TouristDigiPay address this issue by converting crypto to baht immediately, but it remains to be seen whether they will have enough impact to help turn around Thailand’s tourisms struggles.
