Thailand Allows Tourists to Spend Crypto via Credit Cards

Thailand is set to revolutionize its financial system by allowing tourists to spend cryptocurrencies through credit card-linked platforms. This initiative, announced by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, is part of a broader strategy to modernize the nation's financial infrastructure and attract more visitors by offering them the convenience of using digital assets for their transactions.

The plan, currently under review by the Ministry of Finance and the Bank of Thailand, will enable tourists to link their crypto holdings to credit cards for local purchases. Merchants will receive Thai baht as usual, often without knowing that crypto was used in the transaction. This approach avoids using the Thai baht directly, reducing risks to the domestic currency. The pilot is expected to roll out after key infrastructure and regulatory checks are in place.

Beyond enabling crypto use for tourism, Thailand is also planning a reform of its financial laws. The government aims to unify the legal treatment of the traditional capital market and the digital asset space, which are currently governed by separate acts. This reform is intended to create a more favorable environment for both traditional and digital financial activities, fostering growth and innovation in the sector.

Pichai also highlighted the need to review outdated restrictions on institutional investors. Life insurers and large funds holding hundreds of billions of Thai baht are restricted to government bonds. Upcoming changes may open more funds to equities and private sector assets, providing greater flexibility and opportunities in the Thai market.

The Ministry of Finance is also looking to reform rules around treasury stocks and ensure fairer market operations by regulating high-frequency trading practices. A draft law is in the works to expand the Thai Securities and Exchange Commission’s enforcement powers, potentially allowing it to bring major cases directly to prosecutors.

Pichai reiterated support for digital assets, emphasizing the need for clear rules that enable innovation without risking financial stability. He mentioned the rollout of “G-Tokens,” a blockchain-based initiative aiming to allow retail investors to buy government bonds in fractional units. These tokens are expected to improve returns for savers and raise the global profile of Thai sovereign debt.

In addition to the G-Tokens initiative, the Ministry of Finance announced plans to issue $150 million worth of digital investment tokens that allow retail investors to buy government bonds. This came after the country’s securities regulator revealed plans to launch a tokenized securities trading system for institutional investors. In March, the Thai SEC also approved Tether’s USDt (USDT) and Circle’s USDC (USDC) for cryptocurrency trades, allowing the stablecoins to be listed on regulated exchanges across the country.

Overall, Thailand's decision to allow crypto spending for tourists and its commitment to regulatory reform signal a significant shift in the country's financial landscape. By embracing digital currencies and modernizing its financial infrastructure, Thailand is positioning itself as a leader in the global digital economy, poised to attract more visitors and investors in the years to come. This initiative is likely to attract a new demographic of visitors who are comfortable with digital transactions, further boosting the tourism industry and stimulating the local economy.