Thailand began testing a pioneering digital payment system Monday that allows foreign tourists to convert cryptocurrency into Thai baht for everyday purchases, in what officials describe as the world’s first program of its kind.
The “TouristDigiPay” pilot program, launched by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, enables tourists to exchange digital assets for Thai baht and spend the converted money through e-money platforms at local businesses ranging from street food vendors to convenience stores.
“This is the world’s first model that doesn’t use crypto directly as a payment medium, but converts it to Thai baht for use through e-money,” Pichai said at the launch event. “It benefits small retailers because they can accept payments like normal transactions, unlike foreign systems that tie crypto to credit cards for use only at large stores.”
Targeting Small Businesses and Street Vendors
The system aims to reach everyday merchants including street food vendors and convenience stores, expanding beyond the large retailers typically served by crypto payment systems abroad.
The 18-month pilot program sets monthly spending limits of 500,000 baht ($15,400), with individual transactions capped at 100,000 baht ($3,080). Unlike overseas models, the system doesn’t require credit card integration.
Finance Ministry Permanent Secretary Lavaron Sangsnit said the program could expand transaction limits beyond 550,000 baht ($16,940) monthly after the trial period, potentially enabling cryptocurrency purchases of high-value assets like real estate or luxury yachts, similar to systems used internationally.
Economic Impact Projections
Pichai estimated the program could generate significant economic benefits, with Thailand receiving approximately 35 million tourists annually. If the system increases average tourist spending by 5,000 baht ($154) per person and boosts overall expenditure by at least 10% through improved convenience, it could create additional economic activity worth roughly 175 billion baht ($5.39 billion).
“Developing the digital economy alongside tourism will create economic opportunities and attract more tourist spending in Thailand, while laying the foundation for the country’s full transition to the digital age,” Lavaron added.
Regulatory Framework and Security
The project represents collaboration between the Securities and Exchange Commission (SEC), Finance Ministry, Anti-Money Laundering Office (AMLO), and Tourism and Sports Ministry.
SEC Secretary-General Pornanong Budsaratragoon explained that the system connects existing digital asset trading platforms under SEC supervision with electronic payment systems regulated by the Bank of Thailand.
The program implements Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures according to AMLO standards. Monthly limits are set at 50,000 baht ($1,540) for small merchant payments and 500,000 baht ($15,400) for merchants verified through Know Your Merchant (KYM) processes.
Users can convert baht back to digital assets within the limits of their original crypto exchange amounts. Transaction fees follow rates set by participating digital asset operators under the sandbox framework.
Implementation Timeline
The SEC is currently updating relevant regulations and has opened pre-consultation sessions with businesses since early August 2025. The TouristDigiPay service is expected to begin operations in Q4 2025.
AMLO Secretary-General Thepsu Bavornchotidara confirmed robust verification processes, with KYC checks at the source and additional verification when converting baht back to digital assets.
Source: Khaosod English
