Thailand\'s central bank promotes Thai baht to support stablecoin plan

The Bank of Thailand promotes Thai baht stablecoin program and will hold public hearings during the year

The Bank of Thailand is advancing a 1:1 baht stablecoin program and is expected to hold a public hearing before the end of the year. The country is studying the regulatory path for digital settlement.

The Bank of Thailand is developing a guide for the Thai baht stablecoin pegged to the national currency in a 1:1 ratio. President Vitai Ratanakorn said the bank plans to open up research and public feedback on the topic in the coming months, providing banks and financial institutions with a possible path into the use of regulated stablecoins.

The plan marks a shift in Thailand\'s previous cautious attitude towards private baht pegged tokens. In 2021, the Bank of Thailand warned that the baht backed stablecoins used for payments could be similar to electronic money and would require direct regulatory review before operating. This new work retains this control within the official financial system while creating space for a regulated tokenized baht model.

The Bank of Thailand does not view the plan as an open channel for foreign currency payments. Vitai emphasized that payments within Thailand must be in the Thai baht, which links the proposed stablecoin to national currency settlements rather than dollarized cryptocurrency payments.

Banks can use the token for settlement

Tokens in the plan will be backed by Thai baht in a 1:1 ratio and will be available to banks for settlement. Specific retail payment use cases have not yet been finalized, and the central bank is still reviewing how to use the token without excessively weakening payment regulation, currency stability, or consumer protection.

This design brings the Thai baht stablecoin closer to regulated financial market infrastructure than to offshore cryptocurrency trading tokens. The central bank\'s goal is to keep up with the development of digital finance while allowing commercial banks and financial institutions to participate in tokenization settlement in accordance with official rules.

Thailand is also tightening control on crypto transfers in other aspects. The country\'s securities regulator recently solicited opinions on crypto travel rule requirements, pushing wallet transfers, counterparty data and digital asset business operators to comply with stricter compliance requirements.

These two routes demonstrate Thailand\'s current attitude towards digital assets: payment innovation can be advanced through regulated channels, while open crypto transfers face stricter inspections of money laundering, wallet risks and cross-border activities.

Local stablecoins are promoted in the wake of global policy shifts

Thailand\'s launch of the plan comes as central banks and regulators are reassessing stablecoins through currency sovereignty, payment infrastructure and settlement efficiency. Dollar stablecoins still dominate global crypto liquidity, but more jurisdictions are studying local currency tokens to link digital payments to their own currencies.

This concern has influenced the stablecoin debate in Europe. The Qivalis euro project received support from 37 banks as European institutions look for regulated euro-denominated assets to counter the dominance of the U.S. dollar stablecoin.

The debate in the United States is different. Federal Reserve Governor Christopher Waller recently linked stablecoin growth to demand for treasury bonds, suggesting that when stablecoin reserves are held in the form of cash and short-term government debt, dollar-backed tokens can expand demand for U.S. safe assets.

Thailand\'s plan backed by the Thai baht goes in the opposite direction: a local currency token designed to keep settlements within the Thai baht system. The Bank of Thailand is expected to hold a public hearing before the end of the year, relevant guidelines are still being formulated, and the use of bank settlement is also under review.