Thailand has recently announced plans to introduce a novel initiative that would allow international tourists to spend cryptocurrencies through credit card-linked payment systems.
The ambitious move, announced by Deputy Prime Minister and Finance Minister Pichai Chunhavajira at an investment seminar in Bangkok, is part of the country’s broader efforts to integrate digital assets into its financial infrastructure and modernize its overall economic system.
Facilitating Crypto Adoption for Tourists
Under the proposed scheme, tourists will have the capability to connect their cryptocurrency holdings to credit cards, facilitating local transactions. Merchants receiving payments would continue to obtain funds in Thai baht, thus remaining unaware that cryptocurrencies were initially used.
According to Minister Pichai, the approach is specifically designed to mitigate risks associated with directly using cryptocurrencies in domestic transactions, safeguarding the stability of Thailand’s national currency.
The adoption of crypto spending for tourists aligns with Thailand’s strategic intent to attract tech-savvy international visitors and to position itself as a “forward-thinking, digitally inclusive economy.”
This method, currently being reviewed by the Ministry of Finance and the Bank of Thailand, aims to leverage existing payment infrastructures, thus facilitating easier and immediate integration once regulatory approvals are secured. Implementation is expected to commence following comprehensive infrastructure assessments and the establishment of necessary regulatory frameworks.
Minister Pichai emphasized that the planned system would be straightforward to implement, provided that all supportive technological and regulatory components are strongly established.
The pilot phase will serve as a practical evaluation of the approach, which if successful, could serve as a model for further integration of digital assets within Thailand’s financial ecosystem.
Broader Financial Regulatory Reform
Asides its cryptocurrency initiative for tourists, Thailand is also advancing significant financial regulatory reforms aimed at unifying the regulatory environment for traditional capital markets and the emerging digital asset sector.
Currently, these two financial sectors operate under distinct sets of regulations, and the proposed unification would streamline operations and enhance market clarity.
Additionally, the Thai government is considering modernizing restrictions on institutional investors, allowing major financial entities, such as life insurers and large investment funds, greater access to equity markets and private-sector investments.
This shift represents a considerable move away from current limitations, where institutional investors are largely restricted to safer assets such as government bonds.
The Ministry of Finance is further drafting legislation intended to enhance the enforcement capabilities of the Thai Securities and Exchange Commission (SEC).
Under the new law, the SEC would potentially gain the authority to directly escalate major legal violations to prosecution stages, thereby strengthening overall regulatory oversight and market fairness.
As part of this broader financial evolution, Minister Pichai also introduced the concept of “G-Tokens,” blockchain-based fractional government bonds accessible to retail investors. This initiative aims to improve investment returns for smaller investors and boost Thailand’s international financial profile.
Featured image created with DALL-E, Chart from TradingView