The Bank of Thailand plans to open a public consultation on a baht-pegged stablecoin framework that would require full 1:1 backing with Thai baht reserves. Central bank Governor Vitai Ratanakorn has indicated the initiative is part of efforts to support financial innovation while safeguarding monetary and financial stability.
Baht-Pegged Stablecoin Framework
Under the proposed approach, issuers of a Thai baht stablecoin would be required to maintain reserves equal to 100% of the tokens in circulation, ensuring redemption at par with the national currency. The framework aims to establish clear guardrails for privately issued, fiat-referenced digital tokens used for payments and settlement.
A fiat-backed stablecoin is designed to maintain a stable value by holding cash or cash-equivalent reserves that mirror outstanding token supply. By mandating full reserve backing, the central bank seeks to minimize credit, liquidity, and operational risks associated with privately issued digital money.
Consultation Timeline and Scope
The central bank intends to gather industry, consumer, and academic feedback before finalizing rules. A public hearing is expected by year-end, with the consultation to address key elements such as reserve composition and custody, redemption mechanics, disclosure requirements, and ongoing supervision of issuers.
Regulatory Context
The initiative reflects a broader global trend toward formalizing standards for fiat-referenced stablecoins used in payments. Jurisdictions including Singapore and Hong Kong have introduced regimes that require robust reserves, segregation of customer assets, and clear redemption rights. The Bank of Thailand has previously taken a cautious stance on privately issued baht-referenced tokens while exploring central bank digital currency (CBDC) use cases.
What Comes Next
Further details are expected with the release of the consultation paper. The Bank of Thailand is set to refine the framework based on stakeholder input before moving to implementation, with the goal of enabling responsible innovation and protecting users in Thailand’s evolving digital asset ecosystem.