Public hearings slated for baht-pegged digital currency
The Bank of Thailand is moving forward with plans to introduce a baht-pegged stablecoin as part of a push to support digital finance and innovation, says governor Vitai Ratanakorn.Speaking at the "Capital with Purpose" conference hosted by efinanceThai, Mr Vitai said the central bank plans to hold a public hearing on the proposal by the end of the year and has outlined strict initial requirements for any stablecoin that would operate in the country.
The primary condition is the stablecoin must be fully backed on a 1:1 basis by Thai baht reserves.
In the first phase, the central bank intends to allow financial institutions to use such stablecoins for settlement purposes only, with additional use cases to be evaluated in subsequent phases.
The move reflects the bank's desire to balance technological advancement with financial stability and regulatory oversight as global interest in digital currencies grows, Mr Vitai said.
