What Happened?
To revitalize tourism, Thailand has launched a new initiative called “TouristDigiPay,” a regulatory sandbox allowing foreign tourists to exchange cryptocurrencies for Thai Baht, facilitating electronic payments through QR code scanning.
This move aims to address the significant decline in tourist numbers during the first half of the year, particularly from Chinese visitors. Thailand hopes to attract new customers and enhance consumer convenience through financial innovation.
This initiative does not allow for direct cryptocurrency payments; tourists must still undergo identity verification, and regulations such as monthly spending limits and cash withdrawal prohibitions are in place to manage financial risks.
Thailand Allows Foreign Tourists to Exchange Cryptocurrencies for Thai Baht
To rejuvenate its slowing tourism sector, the Thai government officially announced on August 18 the launch of a nationwide regulatory sandbox program called “TouristDigiPay.” This program permits foreign tourists to exchange their cryptocurrencies for the local currency, Thai Baht (1 Thai Baht equals 0.93 New Taiwan Dollar), and to spend electronically within Thailand, aiming to inject new vitality into the tourism market.
The detailed content of this program was jointly announced by Thailand’s Deputy Prime Minister and Minister of Finance Pichai Chunhavajira, along with officials from the Ministry of Finance, the Securities and Exchange Commission (SEC), the Anti-Money Laundering Office (AMLO), and the Ministry of Tourism and Sports.
Urgent Move in Response to Tourism Decline
The launch of the “TouristDigiPay” program is a direct response by the Thai government to the current challenges faced by the tourism industry.
According to a report released by the World Tourism Institute on July 10, Thailand welcomed approximately 16.8 million tourists in the first half of 2025, a decline from 17.7 million during the same period last year. Among these, the number of visitors from East Asia dropped by 24%, with Chinese tourists, a traditional cornerstone of the tourism sector, decreasing by 34%.
The report indicates that the depreciation of the Japanese Yen has made travel to Japan more attractive, while another destination, Vietnam, has lower travel costs than Thailand, leading tourists to shift to other Asian countries. The report concludes: “The 5% decline in Thailand’s tourism in 2025 highlights the urgent need for market repositioning, strengthening tourist experiences, and diversifying customer sources in a changing regional competitive landscape.”
Operational Mechanism and Regulatory Measures of “TouristDigiPay”
To ensure financial stability and risk management, the “TouristDigiPay” program will operate under the framework of a regulatory sandbox. The focus of this program is on “exchange” rather than “direct payment,” explicitly prohibiting the use of cryptocurrencies as payment tools.
Foreign tourists wishing to utilize this service must follow these steps:
- Account Opening: Accounts must be opened with digital asset businesses regulated by the Thai Securities and Exchange Commission (SEC) and with e-money providers regulated by the Bank of Thailand (BOT).
- Identity Verification: Users must pass strict Know Your Customer (KYC) and Customer Due Diligence (CDD) audits to comply with anti-money laundering regulations.
- Exchange and Payment: Upon completion of verification, tourists can exchange their digital assets for Thai Baht, deposit them into an electronic wallet, and make electronic payments using QR codes and other methods.
Naphongthawat Phothikit, Senior Executive of the Payment Systems and Financial Technology Policy Department at the Bank of Thailand, revealed that the central bank has collaborated with e-money service providers to develop a “Tourist Wallet” specifically designed for foreign tourists, offering convenience to those who have yet to establish cross-border QR payment agreements with Thailand.
Strict Risk Controls and Spending Limits
To prevent money laundering and other financial crimes, this program includes multiple security measures, such as spending limits, restrictions on high-risk transactions, and cash withdrawal controls.
- Spending Limits: For merchants with card machines, the monthly spending limit per tourist is set at 500,000 Thai Baht (approximately 460,000 New Taiwan Dollars); for general small merchants, the monthly spending limit is 50,000 Thai Baht (approximately 46,267 New Taiwan Dollars).
- High-Risk Transaction Restrictions: Transactions are prohibited in businesses designated as high-risk for money laundering by the Anti-Money Laundering Office.
- Cash Withdrawal Controls: Tourists cannot withdraw cash directly from their stored balance. All remaining funds can only be withdrawn in a lump sum upon account closure.
Cryptocurrency Payments as a New Trend in Tourism
Globally, utilizing cryptocurrencies to attract tourists or high-end clients seems to be becoming a trend. Bhutan has partnered with Binance Pay to allow tourists to pay with cryptocurrencies, while the United Arab Emirates has reached agreements with Crypto.com to enable passengers to purchase flight tickets using cryptocurrencies.
Although the Chinese government issued strict bans in 2021, clearly stating that all cryptocurrency-related business activities (such as trading, exchanging, and acting as central counterparties) are considered “illegal financial activities,” this does not render Thailand’s policy entirely ineffective in attracting Chinese tourists.
For overseas Chinese or seasoned cryptocurrency players in China, they already have assets in overseas exchanges. The target audience for this strategy may not only be Chinese tourists; rather, its more significant strategic importance lies in “expanding new customer sources,” attracting young, high-tech, and high-spending tourists from Europe, America, Japan, South Korea, and Southeast Asia.
It is evident that Thailand’s strategy aligns with this global trend, aiming to carve out a new path in the intense regional tourism competition.
Reference: cointelegraph, nationthailand