The Bank of Thailand (BoT) has revealed plans to establish a 1:1 baht-backed stablecoin that will be issued by licensed private institutions rather than the central bank itself. A public consultation on the proposal is expected before the end of 2026, as Thailand continues expanding its digital asset infrastructure while maintaining tight oversight of the financial system.
Initially, the stablecoin will be reserved for banks and financial institutions, with broader public adoption considered at a later stage.
Private Issuers Will Back Every Stablecoin With Thai Baht
Unlike a central bank digital currency (CBDC), the proposed stablecoin will be issued by regulated private entities operating under rules established by the Bank of Thailand.
Each token must be backed one-to-one with Thai baht reserves, which will be held in designated accounts at licensed financial institutions. The reserve-backed model is designed to ensure full redemption while maintaining financial stability and public confidence.
Speaking at the "Capital with Purpose" conference, Bank of Thailand Governor Vitai Ratanakorn explained that the project will initially focus on institutional settlement, allowing banks and other regulated financial firms to use the digital currency for transfers and payments.
Retail applications are expected to follow only after regulators assess the system's performance and operational risks.
Sandbox Testing Paved the Way for the New Stablecoin
The proposal builds upon several years of experimentation by the Bank of Thailand.
In 2024, the central bank launched its Programmable Payment Sandbox, allowing participants to test baht-denominated digital payment systems in a controlled environment. The program was expanded in late 2025, providing regulators with additional operational data that now forms the basis for the upcoming regulatory framework.
The extensive testing has allowed the central bank to evaluate settlement efficiency, security, and compliance before moving toward a broader rollout.
Beyond payments, the Bank of Thailand has also explored potential applications for carbon credit trading and green finance, where blockchain-based settlement could improve transparency and reduce inefficiencies in environmental markets.
Thailand Tightens Foreign Exchange Enforcement
Alongside its stablecoin initiative, the Bank of Thailand reaffirmed its commitment to strengthening enforcement of the country's foreign exchange regulations.
Governor Ratanakorn stressed that QR code payments within Thailand must be settled exclusively in Thai baht, adding that transactions conducted in foreign currencies through platforms such as Alipay and WeChat Pay are not permitted for domestic payments.
Between February 2025 and May 2026, Thai regulators reportedly suspended around 5,000 accounts linked to unauthorized peer-to-peer renminbi transactions.
The governor warned that payment providers facilitating settlements in foreign currencies without authorization could face financial penalties, license suspensions, or complete revocation of their operating licenses.
Retail Forex Trading Also Faces Greater Scrutiny
The central bank also addressed the growing popularity of retail foreign exchange trading.
Governor Ratanakorn made it clear that the Bank of Thailand has no intention of licensing speculative retail forex activities, warning that providing settlement services for unauthorized foreign exchange transactions could violate the country's Foreign Exchange Control Act of 1942.
Violations may carry penalties of up to 200,000 baht in fines as well as three years of imprisonment.
Thailand Expands Digital Finance While Maintaining Control
The proposed stablecoin highlights Thailand's strategy of embracing blockchain-based financial innovation without surrendering regulatory oversight.
Rather than issuing a government-controlled CBDC, authorities are opting for a fully reserved, privately issued stablecoin model that can modernize settlement infrastructure while preserving existing financial safeguards.
Combined with stricter enforcement of foreign exchange rules, the initiative demonstrates the Bank of Thailand's broader objective of supporting digital finance while maintaining stability, regulatory compliance, and confidence in the national currency.
