Thailand’s Finance Minister Pichai Chinwajira has made some positive comments regarding wider adoption of digital asset payments in the kingdom, but several hurdles remain.

On January 8, Mr Pichai questioned why Thailand should not accept cryptocurrencies, which are being exchanged globally with great demand, replying:

“With increasing demand and ongoing geopolitical issues around the world, people are increasingly looking for alternatives to traditional currencies,” he said.

Will Thailand embrace crypto?

However, “Thailand is not fully ready for digital currency at this time,” he said, adding that the country is “looking to create a platform to identify potential users and establish a market is where they can exchange and engage.”

He suggested allowing tourists to use local exchanges to purchase property in Thailand, which is currently not possible.

“For example, if tourists come to Thailand, they can register their coins on a local platform that ensures authentication or allows you to know your customer protocol. When making a purchase, they can use their One could pay using coins through the exchange house of choice.

Buyers and sellers won’t know what kind of money they’re receiving, but the coins will be transferred to the app and can then be converted into baht through clearing houses, he added.

Mr. Pichai also confirmed that a pilot of crypto payments will be launched in a controlled sandbox environment on the tourist island of Phuket later this year. He stressed that the experiment would be conducted within the existing legal framework.

Obstacles remain.

However, some hurdles remain as Thailand’s central bank is cracking down on decentralized digital assets, outlawing crypto payments in 2022.

Additionally, foreigners visiting or residing in the country cannot access local payment platforms or crypto exchanges such as Binance Thailand as they cannot register without a citizen ID card.

Additionally, the Thai government is currently in the process of implementing sweeping tax reforms that will affect all remittances coming into the country from abroad, which could deter foreign investment.

Finally, Thailand’s digital asset market is undergoing a transition from retail to a more institutional focus, Binance Thailand CEO Niron Phuattananukal said in October.

At the time, the Thai SEC proposed rules that would allow institutional-level mutual and private funds to invest in crypto products such as US spot crypto ETFs, but with limited retail access.