To attract more international tourists to Thailand, the authorities are allowing them to pay in cryptocurrency for local goods and services. The country is revamping its outdated capital market laws to ease regulations surrounding digital assets. As the Deputy Prime Minister and Finance Minister, Pichai Chunhavajira has introduced this initiative, it is a bold step towards digital financial transformation and tourism innovation.
At a recent investment seminar in Bangkok, the scheme entailed permitting tourists to link their crypto wallets to credit card platforms. Every time a tourist buys, the crypto automatically changes into Thai baht. In this way, the merchants get local currency and won’t need to deal with it. The goal of this smooth process is to make it easier for visitors to spend while making sure that the domestic economy avoids getting embroiled in crypto volatility.
Pichai said that the rollout is “very, very fast” once the infrastructure and regulations are properly set up. “This model keeps the Thai baht away from cryptocurrency, and this would reduce the risk to our currency,” he said.
Besides tourism, the government is also reviewing important updates to its financial system. A significant aspect of the push involves bringing together the regulation of the traditional capital markets and the digital assets, which, at present, have their own legislation.
Pichai acknowledged that restrictions on institutional investors like life insurers and large funds may be relaxed. Currently, these entities primarily invest in government bonds. Policies on new investments to provide more leeway to insurers to invest more in the stock market could also improve capital markets activity.
Reforms may include better regulation of treasury shares and high-frequency trading practices to ensure a fairer market. The Thai Securities and Exchange Commission (SEC)’s new draft law probably allows for prosecuting high-level offenders directly to enhance its enforcement ability of the SEC in the nation.
Pichai could reaffirm his commitment to digital assets. For instance, Thailand could utilize digital finance through “G-Tokens,” a blockchain-based platform that will allow for fractional ownership of government bonds, making investments more accessible and offering better returns to savers.
This initiative comes on the heels of several recent developments, including the announcement by the Ministry of Finance to issue digital investment tokens worth $150 million and the approval by the SEC for the regulated trading in the country of Tether’s USDT and Circle’s USDC stablecoins.
By blending innovation with regulatory foresight, Thailand is paving the way for a future-ready financial center. The new development will make Thailand appealing to more crypto users from all around the world. Moreover, it adds to Thailand’s global appeal as a destination for travelers who seek convenience, technology, and money.
