BoT vows to continue with stablecoin plan

Public hearings slated for baht-pegged digital currency

The Bank of Thailand is moving forward with plans to introduce a baht-pegged stablecoin as part of a push to support digital finance and innovation, says governor Vitai Ratanakorn.

Speaking at the "Capital with Purpose" conference hosted by efinanceThai, Mr Vitai said the central bank plans to hold a public hearing on the proposal by the end of the year and has outlined strict initial requirements for any stablecoin that would operate in the country.

The primary condition is the stablecoin must be fully backed on a 1:1 basis by Thai baht reserves.

In the first phase, the central bank intends to allow financial institutions to use such stablecoins for settlement purposes only, with additional use cases to be evaluated in subsequent phases.

The move reflects the bank's desire to balance technological advancement with financial stability and regulatory oversight as global interest in digital currencies grows, Mr Vitai said.

Addressing concerns about cross-border mobile payment services, he reiterated that personal QR code payments in Thailand must be conducted exclusively in baht.

Yuan-denominated transfers via personal QR codes on platforms such as Alipay and WeChat Pay are not permitted in the Thai market.

The central bank is coordinating with the operators of those platforms to review transactions and identify any non-compliance with Thai regulations, Mr Vitai noted.

The regulator has suspended roughly 5,000 accounts used for peer-to-peer yuan transfers via Alipay and WeChat Pay between February 2025 and May 2026.

Mr Vitai warned that regulated payment service providers are required to process transactions only in baht, and breaches could result in corrective measures, fines, suspensions, or even revocation of licences.

Regarding the proliferation of businesses offering foreign exchange trading (forex) services to retail customers, he said the central bank does not have a policy to grant licences for forex operations targeting speculative trading.

Mr Vitai noted that providing money transfer services to settle such transactions, whether domestic or foreign, could be violating Thailand's Exchange Control Act of 1942.

Violations are subject to penalties of up to 200,000 baht and up to three years in prison, or both, he said.

Individuals or entities that advertise or promote speculative foreign currency trading could face charges under the Emergency Decree on Fraudulent Borrowing of 1984. Penalties under the decree may include a prison term of 5-10 years, fines of 500,000 to 1 million baht, and daily fines of up to 10,000 baht for ongoing offences.

Mr Vitai said the regulator has a dual objective of fostering fintech innovation while maintaining control over currency flows and consumer protection as Thailand navigates the evolving digital payments landscape.