Thailand is set to launch a crypto payment pilot program in Phuket, according to reports from Thai media on Wednesday.

Finance Minister Pichai Chunhavajira announced the initiative at a Marketing Association of Thailand seminar, emphasizing the program would operate within existing legal frameworks and wouldn't require new legislation.

"We won't do anything that is illegal," Chunhavajira was quoted as saying, according to a report from The Nation Thailand.

The development signals how the country's approach to digital assets is changing as it seeks to maintain its competitive edge in global finance and tourism.

Chunhavajira reportedly highlighted how recent geopolitical conflicts have disrupted global economies, noting that for individuals fleeing political tensions and seeking to purchase property in Thailand, "paying with Bitcoin could be a much simpler process."

In any case, the pilot program will allow foreign tourists to register their crypto through Thai exchanges and use it for purchases after identity verification.

A clearing house would handle the conversion of digital assets to Thai baht.

Global demand, local need

A separate report from Bangkok Post says that Chunhavajira understands how Bitcoin's limited supply has driven "strong demand" globally.

"This indicates more than half of the codes have likely been forgotten, leaving about $1 trillion in liquidity available for exchange," the report quotes Chunhavajira as saying.

Decrypt reached out to the report's authors for further information.

The move comes as Thailand aims to capitalize on its tourism recovery, with visitor numbers expected to reach 39.8 million in 2025, up from 35-36 million in 2024, Chunhavajira said.

Meanwhile, major economies have already accumulated significant Bitcoin reserves, and public companies such as BlackRock, MicroStrategy, and Metaplanet have been piling up.

Industry experts, however, warn that Thailand risks falling behind in the broader crypto "arms race."

Bitkub Capital founder and CEO Jirayut Srupsrisopa said in an interview with Thai PBS World that the country needs to take action on a strategic Bitcoin reserve.

"The cost of inaction is going to be expensive," Srupsrisopa said. "The longer it takes us to decide, the more expensive it will cost the country."

Srupsrisopa also claimed that Thailand has “one of the highest crypto adoption per capita” levels globally, with at least one of every seven people having downloaded their app.

Meanwhile, grassroots crypto adoption is already taking place in some parts of Thailand. In the Huay Phueng district of Kalasin province, a local community has embraced Bitcoin payments, with over 80 businesses accepting it for everyday transactions.

Edited by Sebastian Sinclair