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Thailand has officially launched TouristDigiPay, a first-of-its-kind regulatory sandbox enabling foreign tourists to convert cryptocurrencies into Thai baht for everyday QR-based transactions. Launched on August 18 and overseen by the Bank of Thailand and the SEC, the program applies stringent KYC and AML checks and is designed to safely usher in crypto-savvy travelers amid a tourism downturn.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira is expected to announce the full details of the scheme on Monday. According to reports in The Nation, only foreign tourists will be eligible, and participants must pass Know Your Customer (KYC) checks before opening accounts with licensed digital asset businesses and e-money providers regulated by the Bank of Thailand and the Securities and Exchange Commission (SEC).
Safeguards include monthly spending caps and restrictions on direct cash withdrawals, ensuring the program remains strictly focused on digital transactions.
The Thailand crypto sandbox comes at a critical moment for the country’s tourism industry, which has been grappling with declining arrivals. In the first half of 2025, Thailand recorded 16.8 million tourists, a drop from 17.7 million during the same period in 2024. The sharpest decline was from East Asia, with a 34% fall in visitors from China alone, according to data from the World Tourism Institute.
“Thailand’s 5% tourism decline in 2025 underlines the urgent need for diversification, market repositioning, and enhanced visitor experiences to compete in a changing regional landscape,” the institute said in its July 10 report.
Neighboring destinations such as Japan and Vietnam have grown more attractive, buoyed by weaker currencies and more affordable travel packages. Thai officials believe embracing cryptocurrency through the Thailand crypto sandbox could help the nation stand out in a highly competitive regional market.
Chunhavajira first hinted at the TouristDigiPay project in May during an investment seminar in Bangkok. The initiative builds on a smaller-scale crypto payments trial in Phuket, announced in January, which is still in development.
The move aligns with broader government efforts to explore digital asset integration. On August 13, Thailand’s SEC concluded a public consultation on the use of financial innovation and cryptocurrencies to stimulate growth in tourism and the wider economy.
“Digital assets are not a cure-all, but they represent an opportunity to attract a new segment of travelers who are looking for seamless, tech-driven experiences,” — Pichai Chunhavajira, Deputy Prime Minister and Finance Minister, during a May seminar.
By situating the rollout inside the Thailand crypto sandbox, regulators can test the risks and benefits in a controlled environment before considering wider applications across the financial system.
Thailand is not alone in turning to digital assets as a way to attract visitors. Bhutan recently partnered with Binance Pay and DK Bank to enable crypto transactions for tourists. In the Middle East, the United Arab Emirates has signed an agreement with Crypto.com, allowing passengers to purchase flights and in-flight services using cryptocurrencies.
Even private space travel firms are embracing the trend. Jeff Bezos’s Blue Origin recently struck a deal with Shift4 Payments to accept Bitcoin, Ether, Solana, and stablecoins such as USDT and USDC for its commercial space trips.
“Countries experimenting with crypto payments are signaling that they want to capture the spending power of a global, digitally native traveler base,” — Ananya Ratanaporn, senior analyst at the Asia Digital Economy Forum.
For Thailand, the Thailand crypto sandbox represents both an economic experiment and a tourism lifeline. If successful, it could redefine the nation’s position in Southeast Asia as a hub for crypto-driven travel and set a model for other countries facing similar declines in traditional tourist inflows.
Officials are expected to release operational details of TouristDigiPay on Monday, including the spending limits, eligible cryptocurrencies, and partnerships with local financial institutions. Analysts say investors should watch closely: the success or failure of the Thailand crypto sandbox could influence future regulatory approaches not just in Thailand but across the region.
As Chunhavajira prepares to unveil the plan, the stakes are high. With tourism revenues accounting for a significant share of GDP, Thailand is betting that its new experiment with digital assets will help restore its position as one of Asia’s most sought-after destinations.
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