Bank of Thailand Advances 1:1 Baht Stablecoin Plan

Thailand's central bank is moving closer to a baht-backed stablecoin. Governor Vitai Ratanakorn said on June 26 that the design study is nearly complete. The plan calls for digital tokens pegged 1:1 to the Thai baht, with every token fully backed by baht held in segregated accounts at licensed institutions.

The full-reserve requirement is strict. No fractional backing, no commingled funds. Each coin must have an equivalent amount of baht set aside in a separate account. That eliminates the kind of run risk that hit unbacked stablecoins in the past.

Public hearings are expected by the end of 2026. Formal regulations would follow in late 2026 or early 2027, the governor said.

Initial usage will be limited to payments between financial institutions. The central bank is starting narrow before expanding the scope. That expansion could include carbon credit markets and green financing, areas where programmable money could automate compliance, the governor said.

The BoT established its Programmable Payment Sandbox in 2024. On Dec. 24 last year, the sandbox was expanded to test these instruments more broadly. Governor Ratanakorn framed the stablecoin effort as payments infrastructure, not a speculative vehicle.

The sandbox has been running for more than a year. The central bank has data from that environment to inform its regulatory design.