Over the past few years, Thailand has emerged as one of Southeast Asia's most proactive and structured hosts for digital asset regulation. Driven by a high level of retail crypto adoption, a tech-savvy population and strong institutional backing, the focus has shifted towards building a utility-driven digital asset system.
At the core of this transformation are stablecoins -- digital tokens pegged to fiat currencies or reserve assets.
Bank of Thailand governor Vitai Ratanakorn pledged to develop a baht-backed stablecoin as part of efforts to modernise the country's payment infrastructure, align with global financial trends and reduce transaction costs.
The central bank plans to hold a public hearing on the proposal by year-end and has outlined strict initial requirements for any stablecoin that would operate in the country.
In the first phase, the regulator intends to allow financial institutions to use stablecoins for settlement purposes only, with additional use cases to be evaluated in subsequent phases, according to Mr Vitai.
What is the central bank seeking to achieve?
He said the regulator's study of a baht-backed stablecoin aligns with the evolution of the global financial system, with many central banks exploring or implementing similar initiatives.
"The primary objective of a baht stablecoin is to strengthen Thailand's financial infrastructure by improving the efficiency of the country's payment and settlement systems while reducing transaction costs," said Mr Vitai.
The central bank is collaborating with the Securities and Exchange Commission to study and design the operational framework for a baht-backed stablecoin, and he said the project has made significant progress.
The proposal has received substantial public feedback since it was unveiled, which the central bank plans to use to refine the framework. The consultation process is expected to take around three months.
How would a baht-backed stablecoin work?
Mr Vitai said the proposed stablecoin would operate under a fully-backed reserve model. Every stablecoin issued would be backed by an equivalent amount of baht on a 1:1 basis.
For example, if a licensed issuer creates 1 billion baht worth of stablecoins, it must simultaneously place 1 billion baht in reserve.
"Stablecoin issuers must obtain a licence from the central bank and are subject to the central bank's regulatory oversight," he said.
The underlying baht reserves cannot be reused or circulated elsewhere. Instead, the funds remain locked as reserve assets, ensuring every stablecoin can be redeemed for baht at any time.
The proposed design of the 1:1 baht-pegged stablecoin would maintain the coin's value at parity with the baht, preventing the creation of additional money outside the banking system and ensuring that issuing stablecoins does not increase the money supply or create inflationary pressure.
Mr Vitai said the central bank may expand the use cases of financial innovations being tested in its regulatory sandbox to incorporate the stablecoin.
Does the central bank have any other initiatives?
As financial innovation accelerates, the regulator launched the Programmable Payment Project to test new payment technologies.
Under the initiative, the central bank allows eight business operators to test payment settlement and related financial innovations within its regulatory sandbox.
These innovations use programmable electronic tokens built on distributed ledger technology and smart contracts, allowing transactions to be executed automatically once predefined conditions are met. Several pilot projects are underway.
As of April 2026, three participants had advanced to the second phase of testing. TrueMoney is conducting an asset tokenisation payment pilot from June to December 2026, while Bitkub Blockchain Technology is testing escrow payment services, asset tokenisation payment services and blockchain bridging from April 2026 to March 2027. Om Platform is testing escrow payment services from April to December 2026.
Eight participants completed the first round of testing: SCB 10X for Purpose-Bound Money (PBM) in November 2024; Bank of Ayudhya for secure payment in September-November 2025; Kasikornbank for PBM in August 2025-March 2026; Bitkub Blockchain Technology for escrow, asset tokenisation payment and bridging in August 2025-March 2026; TrueMoney for asset tokenisation payment services in August 2025-March 2026; Future Competere Venture for asset tokenisation payment services; Determina for business-to-business lending; and Om Platform for escrow payment services in September 2025-March 2026.
For asset tokenisation payment services, the pilots test the use of baht programmable payment as the settlement medium for transactions involving tokenised digital assets, including digital tickets, non-fungible tokens, investment tokens and utility tokens.
The initiatives are designed to make digital asset transactions more convenient and transparent, while improving settlement efficiency through atomic settlement, which enables payments and asset transfers to be completed simultaneously.
Consumers and merchants are expected to access a broader range of programmable financial services and digital asset transactions in the future, noted the central bank.
Regarding the PBM service, the pilot is being conducted on a limited basis for foreign tourists, allowing them to exchange digital assets for baht programmable payment, using the funds to pay for goods and services via QR codes at participating merchants.
The pilot is limited to designated locations and specific time periods, such as selected international conferences or major events. Participating merchants can continue to receive payments in baht deposited directly into their bank accounts, as they do under the existing payment system.
In addition, the pilot tests the technical capabilities of programmable payments by enabling payment conditions based on factors such as geographic location and designated merchants. The project also assesses the potential benefits of reducing the need for cash currency exchange and lowering foreign currency transaction costs for international visitors.
How are regional peers approaching stablecoins?
The Hong Kong Monetary Authority (HKMA) granted its first two stablecoin issuer licences on April 10, 2026, to HSBC and Standard Chartered Bank (Hong Kong), authorising both institutions to issue Hong Kong dollar-referenced stablecoins under the Stablecoin Ordinance, which took effect in August 2025.
According to the HKMA, the licensing regime is a milestone in Hong Kong's digital asset development, providing a regulatory framework that supports innovation while ensuring strong consumer protection and effective risk management.
Standard Chartered plans to operate its stablecoin business through its joint venture, Anchorpoint Financial Ltd. In May 2026, Anchorpoint completed a full-lifecycle test of its HKDAP token on the Ethereum mainnet.
Meanwhile, HSBC confirmed development of its HKD stablecoin remains on schedule.
The Monetary Authority of Singapore introduced its stablecoin regulatory framework in August 2023 for single-currency stablecoins issued in Singapore and pegged to the Singapore dollar or any G10 currency.
Under the framework, issuers must meet four key requirements. The first is value stability: reserve assets must comply with strict requirements covering composition, valuation, custody and independent audits.
Another requirement covers capital and liquidity: issuers must maintain minimum capital and liquid assets to support financial resilience and enable an orderly wind-down if necessary.
In addition, there must be redemption at par: stablecoins must be redeemable at face value within five business days of a redemption request.
Finally, issuers must provide clear information on reserve management, holders' rights and audit results.
The Bank of Korea has been conducting an in-depth study of Korean won-backed stablecoins while lawmakers debate legislation governing their issuance.
According to an S&P Global report, some proposals would allow non-bank issuers to enter the market. However, financial regulators favour a more conservative approach, requiring stablecoin issuers to be majority-owned by banks, citing their established risk management practices and regulatory oversight.
The report noted banks are likely to lead early adoption, focusing initially on institutional applications such as cross-border wholesale settlement. The planned launch of real-world asset tokenisation in 2027 could further accelerate stablecoin adoption by providing a digital settlement asset for tokenised securities.