Thailand is set to launch a pilot programme in 2025, allowing foreign tourists to use Bitcoin for transactions in Phuket, one of the country’s most popular tourist destinations. The initiative, announced by Deputy Prime Minister and Finance Minister Pichai Chunhavajira on January 8 at a seminar organised by the Marketing Association of Thailand, aims to integrate digital currencies into everyday transactions while operating within the nation’s existing legal framework.

Digital Payments for a Competitive Edge

The programme is designed to make digital transactions more accessible in tourism-focused cities, enhancing convenience for foreign visitors. Pichai stated that the pilot would not require amendments to current laws and would strictly adhere to existing regulations.

Tourists will be able to register their Bitcoin through a Thai exchange and verify their identities before making purchases. A clearinghouse will then convert the cryptocurrency transactions into Thai baht, ensuring compliance with local financial systems.

Highlighting the benefits of the scheme, Pichai mentioned how refugees from the Russia-Ukraine conflict could use Bitcoin to purchase property in Thailand, bypassing challenges in obtaining Thai baht. The pilot programme reflects Thailand’s efforts to remain competitive in the global tourism market and to tap into emerging digital payment trends.

Government Push for Digital Innovation

Pichai emphasised that the initiative would operate legally and would not feature “anything that is illegal.” The pilot aims to test the feasibility of integrating digital currencies into Thailand’s financial ecosystem while avoiding potential risks.

This development comes in the wake of former Prime Minister Thaksin Shinawatra’s call in December 2024 for the Thai government to explore cryptocurrencies through sandbox experimentation. Shinawatra argued that Thailand should study digital assets to stay ahead of global digitisation trends, though he cautioned against government investment in cryptocurrencies.

The Role of Thailand’s Financial Sector

The move aligns with regulatory developments in the country’s financial sector. Nirun Fuwattananukul, CEO of Binance Thailand, highlighted the growing importance of digital assets in a recent opinion piece. He noted the Thai Securities and Exchange Commission’s efforts to expand regulations and legitimise digital currencies, creating an ecosystem where traditional finance and digital assets coexist.

Fuwattananukul stressed that this regulatory push goes beyond Bitcoin adoption, aiming to establish a mature financial system that integrates both traditional and digital asset markets.

Global Context and Strategic Vision

Thailand’s pilot programme represents a strategic vision to integrate digital currencies into the tourism sector, a vital contributor to the nation’s economy. By streamlining payment options for international visitors, the initiative seeks to enhance the travel experience and attract more global tourists.

As the cryptocurrency market continues to evolve, Thailand’s proactive approach could position it as a leader in digital financial innovation, particularly in tourism-driven economies.