Bank of Thailand Backs 1:1 Baht Stablecoin While Tightening Cross-Border Payment Rules
The Bank of Thailand plans to open a public consultation on a proposed digital stablecoin that would require full 1:1 backing with Thai baht reserves. Central bank Governor Vitai Ratanakorn announced June 30 that a public hearing will be held by the end of 2026. The initial framework limits the stablecoin to financial institutions for settlement purposes, with broader use cases to be evaluated later.
Ratanakorn also tightened enforcement on cross-border mobile payment platforms, reiterating that all personal QR code payments in Thailand must be conducted exclusively in baht. Regulators suspended approximately 5,000 accounts used for peer-to-peer yuan transfers via Alipay and WeChat Pay between February 2025 and May 2026. The central bank is coordinating with those platforms to review transactions and identify violations.
Payment service providers processing transactions in unauthorized currencies face corrective measures, fines, suspensions, or license revocations. The governor clarified that the central bank will not grant licenses for retail foreign-exchange operations intended for speculative trading. Facilitating transfers for speculative forex transactions may violate the Exchange Control Act of 1942, carrying penalties of up to 3 years’ imprisonment and a $6,012 (200,000 baht) fine. Individuals promoting speculative currency trading could face fraud charges under a 1984 emergency decree, punishable by up to 10 years in prison and significant daily fines.
Ratanakorn said the central bank’s dual objective is to foster financial technology while maintaining strict control over consumer protection and domestic currency flows.