Thailand to Launch 10 Billion Baht Stablecoin Backed by Government Bonds
Thailand's Finance Ministry plans to introduce a government-backed stablecoin to widen investment access and enhance market liquidity.
Thailand’s Finance Ministry is set to launch a 10 billion baht stablecoin backed by government bonds by 2025, according to Finance Minister Pichai Chunhavajira.
The initiative aims to increase public access to investment opportunities by tokenizing government bonds, converting them into a digital stablecoin.
This move is designed to make bonds, which are typically accessed by financial institutions or large investors, more available to individual investors.
A central platform for secondary market trading of the stablecoin will be developed to facilitate its buying and selling, thereby enhancing market liquidity.
Initially, the platform will focus on newly issued government bonds, with oversight from the Public Debt Management Office.
Pichai emphasized that the initiative would not create new money in the system, ensuring stability for the baht.
The Finance Ministry plans to consult with the Bank of Thailand on the regulatory framework for the digital asset, with potential future uses including linking the stablecoin to retail businesses for everyday purchases.
The initiative aims to increase public access to investment opportunities by tokenizing government bonds, converting them into a digital stablecoin.
This move is designed to make bonds, which are typically accessed by financial institutions or large investors, more available to individual investors.
A central platform for secondary market trading of the stablecoin will be developed to facilitate its buying and selling, thereby enhancing market liquidity.
Initially, the platform will focus on newly issued government bonds, with oversight from the Public Debt Management Office.
Pichai emphasized that the initiative would not create new money in the system, ensuring stability for the baht.
The Finance Ministry plans to consult with the Bank of Thailand on the regulatory framework for the digital asset, with potential future uses including linking the stablecoin to retail businesses for everyday purchases.
