Thailand to Pilot Cryptocurrency Payments in Phuket by 2025
Thailand is making strides in the cryptocurrency sector by planning to implement a pilot program that allows tourists to make payments with Bitcoin in the popular tourist destination of Phuket. The initiative is slated for launch in 2025, as announced by Deputy Prime Minister and Finance Minister Pichai Chunhavajira during a workshop held on January 8.
Simplifying Digital Transactions
The pilot program aims to simplify digital transactions for visitors, enhancing their experience while maintaining compliance with existing legal frameworks. Pichai Chunhavajira expressed the government’s vision by stating, ‘We do not want to miss out on new business opportunities,’ referring to the potential economic benefits of integrating cryptocurrency into tourism.
Process for Tourists
Tourists wishing to utilize Bitcoin will need to register through a Thai cryptocurrency exchange and undergo identity verification before completing any transactions. Once a payment is made, the Bitcoin will be converted into Thai baht through a settlement unit, enabling a smooth transactional process for both visitors and local businesses.
Maintaining Competitive Edge
This pilot program is designed to make digital transactions more accessible in tourist cities, thereby helping Thailand maintain its competitive edge in the evolving landscape of digital finance. Pichai emphasized that this initiative will be operated within the current legal framework and will not violate any existing laws. He cited the example of refugees from the Russia-Ukraine conflict who found Bitcoin beneficial for purchasing property in Thailand without the complications of converting into baht.
Encouragement for Cryptocurrency Research
In December 2024, former Thai Prime Minister Thaksin Shinawatra urged the government to explore cryptocurrency further and to promote experiments within a “sandbox” framework. He highlighted the importance of staying updated with global digital transitions, although he refrained from endorsing the purchase of cryptocurrencies.
Challenges from Global Influences
Shinawatra also pointed out potential challenges arising from U.S. policies under former President Donald Trump, which could impact the global cryptocurrency market through taxation and proposals to utilize Bitcoin for settling public debt.
Regulatory Developments
In line with these developments, Nirun Fuwattananukul, CEO of Binance Thailand, commented in October on the new regulations set forth by the Thailand Securities and Exchange Commission. He regarded this legal framework as a significant step in legitimizing and promoting the adoption of digital assets. Fuwattananukul advocates for a mature financial ecosystem where traditional finance and digital assets can coexist harmoniously.
Southeast Asia’s Crypto Hub Ambitions
Thailand is positioning itself as a potential ‘crypto hub’ in Southeast Asia, supported by various pro-cryptocurrency policies, including a 15% tax exemption on cryptocurrency gains. Furthermore, the government has shown willingness to open avenues for large investors to engage with U.S. Bitcoin ETFs. Recent proposals also suggest pathways for mutual funds and private funds to invest in cryptocurrencies.
With these efforts, Thailand aims to attract digital nomads and investors while enhancing its tourism sector through innovative payment solutions. As the pilot program nears its launch in 2025, it remains to be seen how it will shape the future landscape of digital transactions in the country.
