Thailand Seeks to Offer Russian Tourists Crypto Payment Option Amid Fiat Sanctions

Thailand, a popular tourist destination for many Russians, is now searching for ways to make it easier for them to pay their bills despite growing western sanctions over Moscow's military invasion of Ukraine. Because Russian people are now subject to banking limitations, the tourism industry looks into alternative payment methods such as cryptocurrency.

Thailand’s Authorities are Contemplating Allowing Cryptocurrency from Russian Tourists

There are discussions taking place right now between the Phuket Tourist Association (PTA) and the Bank of Thailand (BOT) about finding alternate payment methods for Russian tourists visiting the country, including cryptocurrencies. The move comes after Visa and Mastercard announced that they would no longer support Russian-issued cards outside of the nation, increasing the pressure on Moscow to cease its military campaign against Ukraine.

It was recently reported that Bhummikitti Ruktaengam, president of the Phuket Tourist Association, had mentioned the idea of allowing Russian tourists to use cryptocurrencies as an emergency measure or backup option if fiat transactions could not be processed, according to the Nation Thailand newspaper.

Another suggestion made by the PTA official was for Thailand's businesses to adopt the Russian card payment system Mir, which was formed when some Russian banks were turned down services by Visa and Mastercard following the annexation of Crimea in 2014.

Russia has turned to China's UnionPay for assistance

Russian authorities have begun looking for monetary alternatives in its southern neighbor China as the number of financial payments providers announcing plans to exit the Russian market continues to climb.

The Bank of Russia announced a few days ago that local lenders would be permitted to use the UnionPay payment system. According to the central bank, the latter is based in Shanghai, China, and has operations in more than 180 countries worldwide.

Furthermore, the institution said that numerous Russian banks currently utilize UnionPay. Others (Sberbank and Tinkoff) may soon begin issuing cards that integrate Russia's local Mir settlement system with the Chinese one.

Thousands of Russian and Ukrainian tourists have been stranded in Thai resorts for weeks

Up to 4,000 visitors from the Russian Federation are currently in Phuket, a province of more than 30 islands off Thailand's southern coast that is home to the world's largest concentration of coral reefs. The largest of these islands, Phuket, is a famous tourist destination in Russia due to its natural beauty. According to Bhummikitti, there are currently between 300 and 400 Ukrainian visitors.

According to the Tourism Authority of Thailand, an additional 3,000 tourists from both countries are enjoying their vacations on the islands of Koh Samui, Krabi, and Pattaya (TAT). They have been stranded in Ukraine due to the ongoing conflict or have been unable to return home as a result of canceled flights.

Aeroflot and S7 Airlines, both of Russia, have canceled flights to Phuket after several countries prohibited Russian planes from flying across their territory. The Thai government has canceled a $60 visa extension fee for Russians and Ukrainians, while the Tourism Authority of Thailand (TAT) and tour operators are considering additional measures to assist the travelers.

The outbreak of hostilities in Ukraine began on February 24 when Russian forces crossed the border. According to the United Nations High Commission for Refugees (UNHCR), more than a million Ukrainians sought refuge in neighboring countries during the first week of the conflict. Authorities in Kyiv and non-governmental organizations (NGOs) have turned to cryptocurrency donations to fund defense efforts and address humanitarian issues.

More measures to assist stranded tourists will be discussed at a Cabinet meeting in the coming days, including establishing a tourist-support center and a shelter. Additionally, it will cover the logistics of arranging repatriation flights for Russian visitors and resolving difficulties with travel insurance. According to authorities, tourists from either country will not be deported without their consent.