Thailand Allows Banks to Issue Baht-Pegged Stablecoins This Year

The Bank of Thailand (BOT) has announced that commercial banks will be allowed to issue baht-pegged stablecoins this year, marking a significant step in the country's approach to digital currency regulation.

BOT Governor Sethaput Suthiwartnarueput stated at a financial conference in Bangkok that the central bank is finalizing a regulatory sandbox for banks to test and launch stablecoins backed one-to-one by the Thai baht.

The initiative aims to reduce risks associated with unbacked cryptocurrencies while providing faster, cheaper payment options for consumers and businesses.