Thailand Prepares for Crypto Payments Sandbox to Boost Tourism

Thailand is planning to launch a new payments sandbox called TouristDigiPay, which will allow foreign visitors to convert digital assets into Thai baht for use at local merchants. The initiative aims to revive slowing tourism and lower friction for crypto-savvy visitors. The pilot will initially function as an e-money system for currency conversion, with future plans to link it directly to foreign debit and credit cards. The Thai government hopes to boost inbound tourism, which has faltered despite a strong post-pandemic reopening.

Thailand is set to launch a new payments sandbox, "TouristDigiPay," aimed at reviving its tourism industry by allowing foreign visitors to convert digital assets into Thai baht for local spending. The initiative, scheduled to be unveiled on Monday, August 18, seeks to boost inbound tourism, which has been declining despite a strong post-pandemic reopening [1].

The program will enable foreign tourists to open accounts with regulated digital asset and e-money providers, subject to strict Know Your Customer (KYC) and anti-money laundering checks. Participants will be able to exchange their digital assets for baht and make electronic payments, such as through QR code scanning. The scheme will operate within a regulatory sandbox, ensuring proper oversight and risk management [1].

The Thai government has been reviewing the use of cryptocurrency to stimulate tourism. The Securities and Exchange Commission (SEC) recently completed a public consultation on the use of financial innovation and digital assets to support economic and tourism growth. The feedback period closed on August 13 [1].

The TouristDigiPay initiative is a response to a significant slowdown in tourism this year, primarily due to a decline in visitors from China. The scheme aims to lower friction for crypto-savvy visitors by providing a convenient way to convert digital assets into local currency for spending. The pilot will initially function as an e-money system for currency conversion, with future plans to link it directly to foreign debit and credit cards [2].

The Thai government is collaborating with e-money service providers to develop a "Tourist Wallet" for foreign visitors. This service will facilitate QR code payments, particularly for tourists from countries without existing cross-border QR payment agreements. The Tourist Wallet will initially function as an e-money system for currency conversion, with future plans to link it directly to foreign debit and credit cards [1].

To mitigate the risk of financial crime, such as money laundering, transaction limits will be in place. For merchants with card terminals, the monthly spending limit will be 500,000 baht per account. For small, general merchants, the limit will be 50,000 baht per month. Transactions will be prohibited at businesses deemed high-risk for money laundering under AMLO guidelines. Furthermore, tourists will only be able to withdraw money upon closing their accounts, and not as cash based on their top-up balance [1].

The initiative is part of broader efforts to boost inbound tourism, which has faltered despite a strong post-pandemic reopening. In the first seven months of 2025, Thailand recorded 19.3 million foreign arrivals, down 6% year-on-year, alongside a 4.2% drop in international tourism revenue [2].

References:
[1] https://www.nationthailand.com/business/digital-assets/40054107
[2] https://finance.yahoo.com/news/thailand-pitches-crypto-baht-qr-092525038.html