Key points
- 18-month pilot program allowing foreign tourists to convert crypto to baht.
- Conversion cap set at 550,000 baht ($16,949.15) to mitigate money laundering risks.
- The program aims to boost Thailand’s tourism sector, which has seen a decline in recent years.
- Tourists will use Thai-based crypto exchanges and e-wallets for transactions.
Thailand is launching an ambitious 18-month pilot program to allow foreign tourists to utilize cryptocurrencies for local payments, a move designed to revitalize the nation’s struggling tourism sector.
The initiative, announced by government officials on Monday, will permit eligible visitors to convert cryptocurrencies into Thai baht, facilitating seamless transactions within the country. This innovative approach aims to attract more international visitors and stimulate economic growth.
To ensure the program’s integrity and prevent potential money laundering, a strict conversion limit of 550,000 baht ($16,949.15) will be implemented during the pilot phase. This cap, according to Finance Ministry permanent secretary Lavaron Sangsnit, is subject to review following the 18-month trial. The government believes that this controlled rollout will allow it to assess the effectiveness and risks associated with the initiative.
The process will involve the use of licensed Thai-based cryptocurrency exchanges, enabling tourists to convert their digital assets. The converted baht will then be transferred to readily available online wallet applications, allowing for convenient payments to local businesses.
Finance Minister Pichai Chunhavajira expressed optimism that this initiative would not only attract tourists but also encourage increased spending during their stay.
The program arrives amidst a concerning downturn in Thailand’s tourism sector. The state-planning agency recently revised its 2025 forecast for foreign tourist arrivals downward by 10%, predicting 33 million visitors. This figure is significantly lower than the pre-pandemic peak of 39.9 million in 2019, which generated a substantial 1.91 trillion baht ($58.86 billion) in revenue.
The success of the cryptocurrency pilot program will be crucial in bridging this gap and helping Thailand regain its position as a leading tourist destination.
