How tourist spending is going digital

New sandbox is meant to encourage use of cryptocurrency for travellers

- NNAREERAT WIRIYAPONG WICHIT CHANTANUSORNSIRI

Starting in the fourth quarter this year, foreign investors arriving in Thailand can convert digital assets such as cryptocurrencies into baht to cover their travel expenses and spending in the country.

The initiative called TouristDigiPay is set for a nationwide pilot programme over 18 months within a regulatory sandbox. By allowing foreign tourists to use digital assets as a source of funds for their spending in Thailand, the government is promoting innovations to support the domestic economy and stimulate the stagnating tourism industry.

In addition, Thailand can capitalise on the growth of cryptocurrencies worldwide and position itself as a regional leader in the digital economy, note pundits.

Here is a closer look at the initiative to determine how it can help Thailand revive its key tourism sector.

HOW WILL TOURISTDIGIPAY WORK?

The TouristDigiPay sandbox allows digital asset operators regulated by the Securities and Exchange Commission (SEC) to collaborate with e-money service providers regulated by the Bank of Thailand to offer services to foreign tourists seeking to convert digital assets to baht for spending in Thailand via electronic payment (e-money) systems.

Under the sandbox, foreign tourists can make payments by scanning smartphone apps at various merchants across Thailand, including large retailers and small vendors.

Digital assets are not allowed to be used directly as a means of payment for goods and services, and merchants receive payments in baht.

Visitors need to open accounts with both a digital asset business and an e-money provider regulated by the SEC and central bank to ensure system safety.

Tourists must undergo standard identity checks, including KYC (know your customer) and CDD (customer due diligence), following the Anti-Money Laundering Office’s (Amlo) rules.

Once set up, tourists can swap their crypto for baht and pay electronically, including by scanning a QR code.