Thailand has unveiled its digital Tourist Wallet, enabling foreign visitors to make QR payments in baht, but the cryptocurrency conversion feature is currently on hold pending regulatory approval until mid-August. According to the Bank of Thailand, the primary purpose of the Tourist Wallet is to address a practical issue: currently, cross-border QR payments are only available with eight partner countries, including Singapore, Malaysia, and soon China via UnionPay.
As a result, travelers from other countries face difficulties when making payments in Thailand, a problem the new wallet aims to resolve. Tourists can replenish their wallets using cash at service counters, foreign debit and credit cards, or international bank transfers.
There are spending limits in place: 500,000 baht ($13,800) per month for merchants equipped with card terminals and 50,000 baht for smaller shops. Withdrawals in cash are not allowed, and accounts can only be closed through redemption. However, the integration of cryptocurrency into the Tourist Wallet is still conditional upon regulatory approval. The Securities and Exchange Commission of Thailand is assessing whether regulated exchanges and custodians can securely facilitate the conversion of cryptocurrencies into baht for use in the Tourist Wallet.
The proposed system would require full know-your-customer identification based on passport details, with regulators expressing concerns about potential money laundering and the use of mule accounts. Until the regulatory review, known as a sandbox, is completed and the results are published, likely later this month, cryptocurrency holders will not be able to make direct transactions.
For the time being, the Tourist Wallet operates solely with fiat currency, offering the convenience of QR code payments, while the adoption of cryptocurrency remains contingent upon the outcome of the regulatory sandbox process.