Thailand's Crypto Vision: From Tourist Payments to Tokenized Bonds

Thailand is intensifying its efforts to establish itself as a regional cryptocurrency hub, with former Prime Minister Thaksin Shinawatra endorsing the initiative. During a recent meeting in Bangkok, Shinawatra, along with representatives from global firms such as Metaplanet and UTXO, discussed strategies to position Thailand as a digital asset treasury for Southeast Asia. Kip Tiaviwat of Kliff Capital emphasized that the country's existing familiarity with Bitcoin and the presence of global industry leaders could facilitate the realization of this vision.

The initiative is part of a broader push to enhance economic resilience in the face of weak macroeconomic indicators, including low growth and a struggling tourism sector. According to World Bank data from July 2025, Thailand remains the second-largest economy in Southeast Asia but has faced significant challenges. Shinawatra proposed the establishment of a sovereign strategic reserve to support the nation’s financial stability and long-term economic growth.

In parallel, the government has launched a 18-month pilot program called “TouristDigiPay,” allowing foreign visitors to convert their cryptocurrency into Thai baht through a regulated e-wallet. This initiative aims to facilitate digital payments for tourists without the need for traditional banking infrastructure or carrying cash. The system requires cryptocurrency conversion through licensed operators, with funds stored securely in the e-wallet before being used via Thailand’s widely adopted QR code payment system.

The TouristDigiPay sandbox is expected to increase tourist spending by up to 10%, potentially injecting over ฿175 billion into the economy. The program includes transaction limits for merchants and stringent compliance measures, such as KYC and AML checks, to mitigate financial risks. If successful, the initiative could expand to include higher-value transactions, such as property purchases and luxury goods, further integrating digital assets into the broader economy.

Thailand has also taken a pioneering step in the tokenization of government debt by launching the G-Token program, the world’s first publicly offered tokenized government bond. The Ministry of Finance has selected KuCoin as the first international exchange to support this initiative. The 5 billion baht (US$153 million) bond offering aims to broaden retail investor access to sovereign debt while leveraging blockchain technology for transparency and efficiency. KuCoin Thailand, a locally regulated entity, will manage subscriptions, redemptions, and listings, working alongside partners like XSpring Digital and Krungthai XSpring.

The initiative aligns with broader political and economic strategies, particularly in light of Thaksin Shinawatra’s influence within the ruling party and the appointment of his daughter, Paetongtarn Shinawatra, as Prime Minister. The government-backed G-Token model is seen as a potential blueprint for other countries seeking to tokenize their sovereign debt, combining blockchain’s advantages with the reliability of government-backed assets.

As Thailand continues to strengthen its regulatory framework, it faces ongoing challenges in ensuring cybersecurity, liquidity, and compliance in a decentralized environment. However, the combined efforts of international firms, local partners, and strategic government policies suggest that the country is positioning itself at the forefront of Southeast Asia’s digital financial transformation.

Source:

[1] Thailand's Ex-PM Endorses Push to Build Regional Crypto Hub (https://decrypt.co/337155/thailands-ex-pm-endorses-push-to-build-regional-crypto-hub)

[2] Thailand Launches Crypto-to-Baht “TouristDigiPay” Sandbox (https://www.siam-legal.com/thailand-law/thailand-launches-crypto-to-baht-touristdigipay-sandbox/)

[3] Thailand Taps KuCoin as First Global Exchange for Tokenized ... (https://finance.yahoo.com/news/thailand-taps-kucoin-first-global-064603509.html)

[4] Thailand Taps KuCoin as First Global Exchange for ... (https://decrypt.co/336978/thailand-kucoin-first-global-exchange-tokenized-bond-program)