The Bank of Thailand prepares a consultation on a supervisory framework for Thai Baht stablecoins

On 26 June 2026, Bank of Thailand (BOT) Governor Vitai Ratanakorn confirmed that the central bank is moving forward with a supervision framework for baht-backed stablecoins, with a public consultation to open within the year. We expect that consultation in the third quarter of 2026, followed by a formal framework by year-end. The framework would set out conditions under which private-sector operators could issue and manage baht-backed digital payment instruments under BOT supervision. The Governor also signaled that the BOT’s approach would be less aggressive than that taken by some other jurisdictions, suggesting that progress toward stablecoins backed by other currencies, or broader use cases beyond the initial baht-backed scope, is unlikely to move quickly and will create opportunities for the private sector to shape the discussion.

This new regulatory direction would create a supervised exception for baht-denominated stablecoins that meet specific reserve and redemption requirements.

The BOT banned digital asset payments in 2021 and concluded, based on its CBDC pilots, that the private sector should lead instead

The BOT’s 2021 statement was a direct response to the growing promotion of unregulated digital assets such as Bitcoin and Ether as payment instruments for goods and services. The BOT confirmed that digital assets are not legal tender and cited price volatility, cybersecurity risk, and money laundering concerns.

The central bank had been developing its own central bank digital currency since 2018 across both wholesale and retail tracks. The wholesale programme (Project mBridge) focused on cross-border payments; the Retail CBDC Pilot, completed in 2023, tested domestic consumer and merchant transactions using real-value CBDC. The pilot demonstrated that the technology could support retail payments and programmable payment features, but the BOT concluded that it had no immediate plan to issue retail CBDC, noting that Thailand’s existing payment infrastructure already served basic retail needs. The BOT indicated it would instead apply the pilot’s insights to support private-sector innovation through a new sandbox framework.

The BOT’s Enhanced Regulatory Sandbox has been testing Thai baht stablecoins across two rounds, with three use cases as the primary focus

Over the past several years, the BOT has been conducting an Enhanced Regulatory Sandbox for programmable payments. The sandbox focuses on digital payment instruments that are pegged 1:1 to the Thai baht, fully backed by baht deposits held with regulated institutions, and enabled by distributed ledger technology and smart contract functionality. The first phase of testing concluded with positive outcomes, prompting the BOT to launch a second phase in April 2026. Three use cases have been the primary focus of the sandbox: asset tokenization, escrow payment services, and purpose-bound money. These areas are widely expected to shape the scope and design of the permanent framework once it is introduced.

Following the second round of testing, the BOT published an article setting out its design preferences for Thai baht stablecoins

In a publication through the BOT’s Magazine, the BOT described its approach to Thai baht stablecoins, referred to as THB Stablecoin, as electronic units that maintain a fixed value equal to the Thai baht and function as a medium of payment. The BOT has described price stability as its primary supervisory concern, with the objective of preventing any payment instrument from introducing value uncertainty for users or creating a parallel unit of account alongside the baht. Any permitted stablecoin would be required to maintain a fixed 1:1 value with the Thai baht, be fully backed by unencumbered reserves held in segregated accounts at regulated Thai financial institutions, and offer enforceable redemption at par. Such instruments would not be permitted for speculative trading or listing on digital asset exchanges.

What to expect in the next six months

Asia Group Advisors estimates the public consultation on the stablecoin supervisory framework could open as early as late July to early August 2026, with a formal framework to follow between the end of 2026 and the first quarter of 2027. In its initial form, we expect that the framework will be issued through a BOT notification, allowing implementation without requiring amendments to the parent legislation, the Payment Systems Act, and the lengthy legislative process such amendments would entail. We expect that the framework will permit only Thai baht-backed stablecoins and cover stablecoin issuance, as well as wallet and custody services. The treatment of stablecoin payment settlement and service providers facilitating stablecoin payments remains under discussion. It is not yet clear whether these activities will be permitted under existing licenses or whether a separate authorisation or licensing requirement will be introduced under the new framework.

Companies with an interest in stablecoin issuance, digital payment infrastructure, or programmable settlement services in Thailand should monitor the consultation process closely as the framework takes shape.

For further insights into the stablecoin regulatory framework and guidance on engaging with the regulatory process in Thailand, please contact Notachard Chintakanond, at [email protected] or Supisara Darnchaloemwong at [email protected]