Thailand will let tourists spend crypto via credit cards as it updates financial laws to align capital and digital asset markets.
As part of a larger plan to modernize its financial system and accept digital assets, Thailand is getting ready to allow visitors to spend cryptocurrencies through platforms connected to credit cards.
According to Bangkok Post and The Nation, Pichai Chunhavajira, the deputy prime minister and finance minister, unveiled the idea on May 26 during an investment event in Bangkok.
Travelers can link their cryptocurrency holdings to credit cards for local purchases under the proposal, which is presently being reviewed by the Bank of Thailand and the Ministry of Finance.
As usual, merchants will get Thai baht frequently without realizing that cryptocurrency was used.
The pilot is anticipated to launch after necessary regulatory and infrastructure tests are completed.
Pichai states, “This approach can be immediately adapted for Thailand, provided the supporting systems are in place.”
The model reduces risks to the native currency by avoiding the direct use of the Thai baht.
Regulation Of Capital Markets Is Being Examined
Thailand is preparing to change its banking regulations and permit using cryptocurrencies for travel.
According to Pichai, the government must harmonize the legal regulation of the digital asset area and the traditional capital market, which are presently regulated by different laws.
Pichai added that the government is reexamining antiquated limitations on institutional investors as part of larger capital market reform.
Government bonds are the only option available to life insurers and significant funds with hundreds of billions of Thai baht.
Future adjustments might make more money available for private sector assets and stocks.
According to reports, the Ministry of Finance is also seeking to regulate high-frequency trading to guarantee more equitable market operations and modify regulations about treasury stocks.
A draft bill is now being developed to provide the Thai Securities and Exchange Commission with more enforcement authority and even the ability to refer significant cases straight to prosecutors.
Pichai Indicates His Endorsement Of Digital Assets
Pichai reaffirmed his support for digital assets and emphasized the need for unambiguous regulations that allow innovation without jeopardizing the economy’s stability.
He introduced “G-Tokens,” a blockchain-based project designed to enable individual investors to make fractional purchases of government bonds.
According to him, these tokens should increase savers’ returns and awareness of Thai sovereign debt internationally.
Retail investors can purchase government bonds using digital investment tokens worth $150 million, according to plans revealed by the Ministry of Finance on May 13.
This followed the announcement in February by the nation’s securities authority that it would introduce a tokenized securities trading system for institutional investors.
The Thai SEC also authorized Circle’s USDC and Tether’s USDt for cryptocurrency trading in March, enabling the stablecoins to be listed on regulated exchanges nationwide.
