Thailand to launch THB10 billion stablecoin backed by bonds

THURSDAY, JANUARY 30, 2025
Thailand to launch THB10 billion stablecoin backed by bonds

Pichai expects BOT backing as no new money is being created in the system

 

Thailand's Finance Ministry is planning to introduce a 10 billion baht stablecoin backed by government bonds by 2025, Finance Minister Pichai Chunhavajira said on Thursday. 

 

The initiative, he stated, aims to broaden public access to investment opportunities.

 

The government intends to tokenise government bonds, converting them into a digital asset in the form of a stablecoin. It will allow a wider range of individuals to invest, not just financial institutions or large investors.

 

A central platform for secondary market trading is also being developed to facilitate easier buying and selling of the stablecoin, increasing market liquidity. This platform will initially be used for newly issued government bonds. The Public Debt Management Office will oversee this project.
 

 

"Government bonds are highly trusted assets. The government issues a large number of new bonds each year, but they primarily end up in the hands of financial institutions. We want to make these bonds more accessible to individual investors," Pichai explained.
 

 

Thailand to launch THB10 billion stablecoin backed by bonds

 

He added that existing platforms would be integrated with the new platform to enhance connectivity. There is also potential for linking these platforms to retail businesses, allowing the stablecoin to be used for everyday purchases in the future.

 

The Finance Ministry will consult with the Bank of Thailand on this initiative. Pichai expressed confidence that issuance of the stablecoin would not affect the baht's stability, as no new money would be created within the system.

 

The regulatory framework for this digital asset is still under consideration.
 

 

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