The Thai government is introducing a new initiative, “TouristDigiPay,” aimed at bolstering its tourism industry, which has recently faced a significant downturn. This program will empower foreign tourists to convert their cryptocurrency holdings into Thai Baht for use in electronic payments across the country.
The initiative is designed to address the slowdown in tourism, particularly the decline in visitors from China, by offering an innovative payment solution. The official launch is set for Monday, August 18, and will be detailed at a press conference featuring key government officials.
Key features and requirements of the TouristDigiPay scheme include:
- Currency Conversion: Tourists will be able to exchange digital assets for Thai Baht.
- Eligibility: The service is exclusively for foreign tourists who are temporarily residing in Thailand.
- Account Requirements: Participants must open accounts with regulated digital asset and e-money providers.
- Regulatory Oversight: The program will operate within a regulatory ‘sandbox’ to ensure proper oversight and risk management.
- Customer Due Diligence: Strict Know Your Customer (KYC) and anti-money laundering (AML) checks are mandatory for all participants.
To mitigate the risk of financial crime and money laundering, the program incorporates several safeguards:
- Spending Limits: Monthly spending caps are in place, with a limit of 500,000 baht for merchants equipped with card terminals and 50,000 baht for smaller, general merchants.
- Transaction Restrictions: Transactions are prohibited at businesses identified as high-risk for money laundering activities.
- Withdrawal Policy: Direct cash withdrawals from top-up balances are not permitted. Funds can only be withdrawn upon the closure of a tourist’s account.
In parallel, the Bank of Thailand (BOT) is developing a “Tourist Wallet” to further simplify QR code payments for foreign visitors. This wallet is planned to eventually integrate foreign debit and credit cards, enhancing the payment experience for international travelers in Thailand.
💸 How TouristDigiPay Works
TouristDigiPay enables foreign tourists to:
- Convert cryptocurrency into Thai baht
- Make electronic payments via QR code scanning
- Avoid direct cash withdrawals, reducing risks of financial crime
To participate, tourists must open accounts with regulated digital asset businesses and e-money providers, and pass Know Your Customer (KYC) and anti-money laundering (AML) checks.
🧪 A Regulatory Sandbox Approach
The scheme operates within a regulatory sandbox overseen by the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC). This framework ensures:
- Controlled testing of financial innovation
- Monthly spending limits to maintain financial stability
- Restrictions on high-risk transactions
Spending caps include:
- ฿500,000/month for merchants with card terminals
- ฿50,000/month for small general merchants
Withdrawals are only permitted upon account closure, preventing misuse of top-up balances.
🧳 Who Can Use It?
Only foreign tourists temporarily staying in Thailand are eligible. The service is designed to facilitate payments for visitors from countries without cross-border QR payment agreements.
According to Naphongthawat Phothikit, senior director at BOT’s Payment Systems and Financial Technology Policy Department, the central bank is also developing a “Tourist Wallet” to support future integration with foreign debit and credit cards.
