Thailand is set to embark on a new project to integrate cryptocurrency payments into its tourism sector, beginning with the popular tourist destination of Phuket.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced the pilot initiative during a seminar organized by the Marketing Association of Thailand on Wednesday, according to a report by The Nation.
The government aims to enable foreign tourists to utilize their digital assets for purchases in cities focusing on tourism.
The Pilot Program to Adhere to Existing Legal Frameworks
Pichai emphasized that the pilot program would adhere to existing legal frameworks, reassuring that no laws would be violated.
“We won’t do anything that is illegal,” he stated.
Pichai clarified that current regulations already provide the mechanisms needed to support this project, eliminating the necessity for legal amendments.
The initiative is designed to keep Thailand competitive in the global tourism market while leveraging the increasing popularity and value of cryptocurrencies.
Highlighting Bitcoin’s prominence, Pichai noted its capped supply of 21 million coins, collectively valued at over $2 trillion.
He explained that the trial in Phuket would allow foreign tourists to register their Bitcoin through a Thai exchange, complete identity verification, and then use the cryptocurrency to make payments for goods and services.
A clearing house would convert the Bitcoin into Thai baht for merchants.
“For example, individuals displaced by the Russia-Ukraine war and residing in Phuket might find it challenging to pay 50 million baht for a property. However, using Bitcoin could simplify the process significantly,” Pichai said.
While this pilot is still in its infancy, a small yet growing cryptocurrency community in Thailand has already embraced digital currency in everyday transactions.
In Huay Phueng district, Kalasin province, a village has gained recognition as Thailand’s “Bitcoin town.”
Per the report, a young Bitcoin advocate has transformed his village by encouraging over 80 locals to accept Bitcoin’s smallest unit, Satoshi, for payments.
His coffee shop serves as an educational hub, teaching residents and visitors how to use the Bitcoin Lightning app for cashless transactions.
This grassroots initiative has inspired various small businesses, including noodle shops, market vendors, and tuk-tuk services, to accept Bitcoin payments.
The advocate’s efforts have earned him the affectionate title “King of Huay Phueng.”
Ex-Thai PM Thaksin Shinawatra Urges Government to Embrace Crypto
Last month, Thailand’s former Prime Minister, Thaksin Shinawatra, called on the government to explore the potential of cryptocurrencies and continue experimenting with regulatory sandboxes.
“There are already many cryptocurrencies. Some people say that in the future, we will have more currencies than countries,” Shinawatra said, urging Thais to understand and adapt to this emerging financial landscape.
In June, Thailand’s One Asset Management (ONEAM) became the first company to launch an exchange-traded fund (ETF) in the country that offers exposure to cryptocurrencies.
The Thai Securities and Exchange Commission (SEC) has endorsed ONEAM’s Bitcoin ETF, marking a milestone in the country’s evolving regulatory framework for digital assets.
Last year, the SEC of Thailand updated the criteria for investing in digital tokens, easing some restrictions.
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