Thailand is launching an 18-month program aimed at exploring whether cryptocurrency payments can boost tourism amid a post-pandemic slowdown.

A Struggling Tourism Sector

Before the pandemic, Thailand attracted around 39.9 million foreign tourists, generating approximately $58.86 billion in revenue. However, since then, the economy’s efforts to attract visitors have not been as successful, leading to a revised forecast for 2025 of about 33 million tourists, a decrease of 10% from previous projections.

The TouristDigiPay Program

To stimulate tourism, Thailand is introducing the TouristDigiPay” program. This initiative allows foreign visitors to exchange cryptocurrencies for Thai baht when making purchases within the country.

Developed in collaboration with the Finance Ministry, Anti-Money Laundering Office (AMLO), and Securities and Exchange Commission (SEC), this project aims to leverage financial innovation and digital assets for economic growth alongside boosting tourism.

Navigating the New System

To use TouristDigiPay, tourists must first open accounts with both a cryptocurrency service provider and an electronic money issuer. Both services will be regulated by their respective agencies and require compliance with customer due diligence checks as per AMLO guidelines.

The program operates within a controlled environment to ensure security. There are monthly spending limits, and direct cash withdrawals are not allowed, ensuring that digital assets cannot be directly used for payments. Merchants will receive payments in Thai baht.

Encouraging Travel

Making accurate and secure transactions is often a concern for tourists. By enabling payment through the local currency, programs like TouristDigiPay can provide relief. For example, China’s Alipay saw a tenfold increase in foreign visitors after integrating with regional wallet services.

Potential of Cryptocurrencies

Cryptocurrencies are seen as promising solutions for improving cross-border payments due to their decentralization and security features. Despite this, volatility has limited their widespread adoption. The TouristDigiPay project attempts to overcome these challenges by converting cryptocurrencies into baht in real-time.

While the initiative holds promise, it remains to be seen whether it can significantly contribute to Thailand’s tourism recovery.