Thailand is reportedly exploring the issuance of government-backed stablecoins, potentially backed by bonds, as part of its growing interest in digital currencies, according to sources familiar with the matter. On January 30, unconfirmed reports emerged that Thailand’s Finance Minister discussed this possibility during a meeting with the Securities and Exchange Commission (SEC). Although the government has not officially confirmed these plans, the exploration of stablecoins adds another layer to Thailand’s ongoing crypto ambitions.
This move follows comments from Thailand’s former Prime Minister, Thaksin Shinawatra, who on January 13 urged Thai financial institutions to embrace a more crypto-friendly approach. Thaksin pointed to the increasingly positive stance on cryptocurrency by U.S. President Donald Trump as a potential influence on global financial policies. He specifically advocated for the SEC to promote the trading of stablecoins and other digital assets backed by real-world assets, reflecting his broader push for Thailand to adopt a more digital-forward financial framework.
Thaksin also mentioned that the Thai government is considering the use of cryptocurrency for payments, with the island of Phuket being eyed for a pilot project. This aligns with earlier initiatives, including the government’s plan to establish a crypto sandbox in Phuket by October 2025. The sandbox will allow businesses and consumers to experiment with crypto transactions in a safe, regulated environment, with an emphasis on stablecoins. The initiative is seen as a way to foster innovation, particularly in the tourism sector, which plays a major role in Thailand’s economy.
On top of this, Jomkwan Kongsakul, deputy secretary-general of the Thai SEC, hinted that there might be collaboration between the SEC and the Bank of Thailand (BoT) on potential guidance for baht-backed stablecoins. The BoT has been working on its Programmable Money initiative, which could further shape the country’s digital currency policies.
Thailand’s crypto adoption is also reflected in the country’s broader regulatory moves. In addition to the upcoming Phuket crypto sandbox, the Thai government has already made strides in facilitating the use of crypto, including offering tax breaks for digital businesses as part of its efforts to boost the digital economy. Former Prime Minister Shinawatra has been particularly vocal about the potential for crypto to generate substantial revenue, predicting that such initiatives could bring in annual revenues of up to 100 billion baht (around $2.89 billion).
Thailand’s exploration of stablecoins is part of a broader trend in Southeast Asia, where several countries, including Singapore and Hong Kong, have developed regulatory frameworks for both private and government-backed stablecoins. This indicates a growing regional interest in integrating stablecoins into mainstream financial systems, with government-backed models playing a pivotal role in stabilizing digital currency markets.
While the details remain unclear, Thailand’s crypto push centered on stablecoins and innovative projects like the Phuket sandbox suggests that the country is positioning itself as a key player in Southeast Asia’s evolving digital economy.