The Thai government launched a new scheme on 18 August that allows foreign visitors to convert cryptocurrency into Thai baht. One of its main aims was to contribute to the revival of the tourism sector.
The initiative, called “TouristDigiPay”, is a direct response to the significant decline in tourism, mainly due to the decline in the number of visitors from China.
The Primary Function of TouristDigiPay
The primary function of the TouristDigiPay Sandbox is to allow foreign visitors to easily convert their digital assets (DA) into Thai baht (THB) to spend during their stay in the country.
Actually, it is not a system for directly paying merchants using cryptocurrency. Merchants will only receive payments in the local fiat currency, the Thai baht, which will reduce the risk of volatility for local merchants.
To change this currency, the tourists have to use a QR code.
How Long This Project Will Last
This is mainly an 18-month pilot project. Besides, it represents a strategic combination of economic revitalization and financial innovation.
While the initiative was designed to boost the country’s vibrant tourism sector, it also has profound implications for digital asset regulation, financial inclusion, and Thailand’s global standing in the emerging digital economy.
Account Setup & Process
Tourists are required to open two accounts, such as a digital asset and a tourist wallet. To open the tourist wallet, they can take help from e-money service providers regulated by the Bank of Thailand (BOT).
After converting digital assets into baht, the funds are deposited into the tourist’s e-wallet. Payments are processed through PromptPay, Thailand’s ubiquitous QR code (e-money) scanning system, which enables purchases from merchants nationwide, from large retailers to small businesses.
Regulatory Laws
Collaboration:
The project is a collaboration between several government agencies such as the SEC, BOT, the Ministry of Finance, the Ministry of Tourism and Sports, and the Anti-Money Laundering Office (AMLO).
AML/KYC:
Service providers must have to know some of the key points of this new technological innovation such as Know Your Customer (KYC) and Customer Due Diligence (CDD) checks in accordance with AMLO standards.
Spending limits:
Monthly spending limits of 500,000 baht for verified merchants and 50,000 baht for small businesses.
No withdrawals:
Tourists cannot withdraw cash while the Tourist Wallet is active, and any unconverted baht can be converted into digital assets up to the original amount exchanged at the time of account closure.
Watch the video here.
@thethaigerofficial Thailand launches “TouristDigiPay,” a crypto-to-baht pilot allowing tourists to spend via QR codes. The trial aims to boost tourism spending by 10%. Thailand Crypto Tourism Finance ThailandNews
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