Thailand To Roll Out Pilot for Cryptocurrency Payments in Phuket

Thailand is set to pilot cryptocurrency payments in Phuket, allowing tourists to use Bitcoin for transactions.

Thailand's Deputy Prime Minister and Finance Minister Pichai Chunhavajira revealed at a seminar that the cryptocurrency pilot project will operate within the existing legal frameworks, without requiring new legislation, Thai news outlet The Nation reported on Jan. 8.

This project is designed to promote the use of digital assets and enhance Thailand's appeal as a crypto-friendly destination. The initiative also aims to make cryptocurrency a practical solution for foreign residents, such as those displaced by the Russia-Ukraine war, Chunhavajira explained. He reassured attendees that the initiative would not engage in any illegal activities.

“Those who fled the Russia-Ukraine war and settled in Phuket might find it difficult to obtain 50 million baht to purchase a house,” Chunhavajira said. “However, paying with Bitcoin could be a much simpler process.”

Tourists will authenticate their identity via a Thai exchange before making transactions. Payments will then be converted into Thai baht via a clearinghouse.

Growing Adoption

The pilot program is launching amid growing interest in cryptocurrency adoption in Thailand. In June 2024, the Bank of Thailand (BOT) suggested the government explore digital assets and create sandboxes for testing.

“This sandbox is designed to allow financial service providers and other companies to test distributed ledger technology (DLT) and smart contracts for programmable payments in a controlled environment,” the Australian-Thai Chamber of Commerce (AustCham) explained in a blog post.

Phuket is one of Thailand’s most popular tourist destinations, attracting millions of visitors each year. Analysts reported that around 11 million tourists visited Phuket in 2023. “We don’t want to miss the boat when it comes to new business opportunities,” Chunhavajira said.