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The Bank of Thailand (BOT) announced plans to hold a public hearing on a baht-pegged stablecoin before the end of 2026, while disclosing that it had suspended around 5,000 accounts used for unauthorized peer-to-peer yuan transfers since February 2025.
Governor Vitai Ratanakorn outlined both measures at the Capital with Purpose conference in Bangkok on June 26.
Private Issuers Would Back Baht Stablecoin 1:1 for Settlement Use
The proposed stablecoin would not be a central bank digital currency. It would be issued by licensed private entities rather than the Bank of Thailand itself, with each token required to be fully backed 1:1 by baht reserves held in segregated accounts at licensed financial institutions. Token holders would retain the right to redeem holdings at par at any time.
In the first phase, the stablecoin would be restricted to use by financial institutions for settlement purposes only. The central bank said it would evaluate performance during that pilot before considering expansion into wider retail use.
Secondary reporting indicates formal regulations are targeted for late 2026 or early 2027 following the public consultation.
BOT Suspended 5,000 Accounts Over Unauthorized P2P Yuan Transfers
Vitai said the central bank had suspended approximately 5,000 accounts used for peer-to-peer yuan transfers via Alipay and WeChat Pay between February 2025 and May 2026. Under Thai law, personal QR code payments must be settled in baht through licensed payment gateways.
Direct peer-to-peer yuan transfers between Alipay and WeChat Pay accounts, which bypass that conversion requirement, are not permitted.
Licensed payment service providers face fines, license suspension, or revocation for processing transactions outside the baht requirement.
Providers of money transfer services used to settle speculative foreign exchange trades face criminal penalties under Thailand’s Exchange Control Act of 1942, which includes imprisonment and fines. Additionally, promoters of such services to retail customers face even more severe penalties.
“The BOT has no policy to license currency speculation as a business,” Vitai said.
Thai SEC Opens Travel Rule Consultation for Digital Asset Operators
Thailand’s Securities and Exchange Commission (SEC) opened a separate consultation on June 26 on a Travel Rule for digital asset transfers.
The proposed rule would require operators to share sender and recipient information, verify self-hosted wallets and retain transaction records for at least five years. Comments are due July 10.
