Thailand central bank advances 1:1 baht-backed stablecoin plan, consultation due by year-end

Thailand’s central bank is developing a stablecoin pegged one-for-one to the baht, with a public hearing on the proposal planned before the end of 2026. Governor Vitai Ratanakorn said the token would be issued by regulated private entities rather than the Bank of Thailand, making it distinct from a central bank digital currency, and each unit would have to be fully backed by baht reserves held in defined accounts at licensed financial institutions. The first phase would limit use to banks and financial institutions for settlement, with broader public use to be considered later. The plan builds on the Bank of Thailand’s Programmable Payment Sandbox, launched in 2024 and expanded in December 2025, giving the central bank operating data to shape the proposed rules. Ledger Insights reported the Bank of Thailand has also signaled interest in using stablecoin-based settlement in carbon credit markets and green financing. At the same conference, Ratanakorn reiterated that personal QR code payments in Thailand must be denominated in baht and said renminbi transfers through Alipay and WeChat Pay are not allowed in the Thai market. Between February 2025 and May 2026, regulators suspended about 5,000 accounts tied to peer-to-peer renminbi transfers, while the governor warned that providers handling payments in currencies other than baht could face fines, suspension or license removal. He also said the central bank does not plan to license speculative retail foreign-exchange trading, adding that settlement services for such activity could breach Thailand’s Foreign Exchange Control Act of 1942 and carry penalties of up to 200,000 baht and three years’ imprisonment.