Phuket to pilot cryptocurrency payments to attract tourists
Thailand's cryptocurrency initiative
Thailand is moving closer to integrating cryptocurrencies into its tourism industry. The country plans to launch a pilot project allowing foreign tourists in Phuket to pay for goods and services using Bitcoin, announced Finance Minister Pichai Chunhavajira.
Key Takeaways:
- A pilot project in Phuket aims to simplify cryptocurrency usage.
- Cryptocurrency usage in Thailand is strictly regulated despite their legal status.
- The idea of creating a crypto sandbox in Thailand was proposed by former Prime Minister Thaksin Shinawatra.
Why Thailand needs cryptocurrencies
According to the local media The Nation, the initiative is designed to simplify the use of digital assets and create new business opportunities. The project will be implemented within the framework of existing legislation, and no changes to the laws will be required, as mechanisms to support the initiative are already in place. The experiment aims to maintain Thailand's competitiveness in attracting foreign visitors.
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Minister Pichai highlighted the growing popularity of cryptocurrencies among tourists, particularly Bitcoin. Tourists will be able to register their Bitcoin through a Thai exchange, complete identity verification, and use it for payments. Local businesses will benefit from converting cryptocurrency into Thai baht through a clearinghouse.
The project is also targeted at tourists from regions like Ukraine, where traditional financial transactions may be challenging. Bitcoin could simplify large purchases, such as real estate, which can be difficult to complete via banking systems.
The status of cryptocurrencies in Thailand
Cryptocurrencies are considered legal assets in Thailand, but their use is heavily regulated. The Securities and Exchange Commission of Thailand (SEC) and the Bank of Thailand (BOT) play pivotal roles in establishing the legal framework for working with digital assets.
In 2018, Thailand passed a law regulating cryptocurrency exchanges, initial coin offerings (ICOs), and other operations involving digital assets. All companies dealing with cryptocurrencies are required to register and obtain a license.
Bitcoin Conferences Are Common in Thailand. Source: x.com/stephanlivera
However, using cryptocurrencies as a payment method for goods and services is under strict control. In 2022, the Bank of Thailand announced that cryptocurrencies could not be used for payments to minimize financial risks and prevent illegal activities. Despite this, blockchain and digital asset-related projects are actively developing in the country.
Cryptocurrency initiatives
Former Prime Minister Thaksin Shinawatra previously suggested using Phuket as a pilot site for Bitcoin adoption to increase the country's appeal and attract new investors.
Industry participants have supported this idea, calling it a positive step for the digital asset industry. However, they emphasized the need for a well-regulated approach due to risks such as price volatility.
