In response to a downturn in tourism following the pandemic, Thailand has initiated an 18-month program to explore if cryptocurrency payments can stimulate more international visitors.

Declining Tourism Numbers

Before the coronavirus outbreak, Thailand welcomed approximately 39.9 million foreign tourists, generating about $58.86 billion in revenue. Despite this, the country has struggled to attract travelers in subsequent years. The nation’s planning agency recently revised its forecast for 2025, anticipating a drop from 39.9 million visitors to just 33 million.

TouristDigiPay Program

To encourage tourism and explore the potential of digital currencies, Thailand is set to roll out the “TouristDigiPay” initiative. This program will enable foreign tourists to convert cryptocurrencies into Thai baht for their purchases within the country.

The program involves collaboration between the Ministry of Finance, Anti-Money Laundering Office (AMLO), and Securities and Exchange Commission (SEC). A study was conducted on how financial innovations and digital assets can boost both economic growth and tourism.

Regulations and Security Measures

To ensure compliance and safety, tourists will need to open accounts with both a regulated crypto firm and an e-money provider. These entities must undergo Know Your Customer (KYC) and customer due diligence checks set by the AMLO.

The system is designed to operate in a sandbox environment with monthly spending limits and no direct cash withdrawals. This prevents digital assets from being used directly for payments, and merchants receive all payments in baht.

Targeted Visitors

Only foreign tourists staying temporarily in Thailand will be able to use this service. Once approved, they can exchange their digital assets for baht and make electronic payments, including those made via QR code scanning.

Potential Benefits

Enhancing the ease of payment methods for travelers could significantly impact tourism numbers. A similar initiative in China with Alipay saw a significant rise in foreign tourists after integrating local digital wallets, suggesting that such a program might help Thailand’s efforts to boost visitor numbers.

Digital assets offer potential solutions for improving cross-border payments due to their decentralized and secure nature. However, the volatility of cryptocurrencies remains a challenge, and programs like TouristDigiPay may be necessary to mitigate these risks and gain traction.