Key Takeaways
- Bank of Thailand plans to hold public hearings by late 2026 for a 1:1 baht-backed stablecoin.
- Regulators suspended 5,000 Alipay and Wechat Pay accounts to curb unauthorized yuan QR transfers.
- Speculative retail forex operations will face stiff fines under Thailand’s 1942 Exchange Control Act.
Baht-Pegged Stablecoin Framework
The Bank of Thailand plans to introduce a stablecoin pegged to the national currency as part of an initiative to support financial innovation, central bank Governor Vitai Ratanakorn announced June 30. Speaking at a financial conference hosted by efinanceThai, Ratanakorn said the central bank will hold a public hearing on the proposal by the end of the year.
Under the initial framework, any operating stablecoin must be fully backed on a 1-to-1 basis by Thai baht reserves. The central bank will limit the first phase of the rollout to financial institutions for settlement purposes only, with broader use cases to be evaluated later.
According to a local report, the central bank is also tightening enforcement on cross-border mobile payment platforms. Ratanakorn reiterated that all personal QR code payments in Thailand must be conducted exclusively in baht.
Regulators have suspended approximately 5,000 accounts used for peer-to-peer yuan transfers via Alipay and Wechat Pay between February 2025 and May 2026. The central bank is currently coordinating with those platforms to review transactions and identify regulatory violations.
Payment service providers that process transactions in unauthorized currencies face corrective measures, fines, suspensions, or the revocation of their licenses, Ratanakorn warned. Additionally, the governor clarified that the central bank will not grant licenses for retail foreign-exchange operations intended for speculative trading.
Facilitating transfers to settle speculative forex transactions may violate the Exchange Control Act of 1942, which carries penalties of up to 3 years’ imprisonment and a $6,012 (200,000 baht) fine. Furthermore, individuals who advertise or promote speculative currency trading could face fraud charges under a 1984 emergency decree, punishable by up to 10 years in prison and significant daily fines.
Ratanakorn said the central bank’s dual objective is to foster financial technology while maintaining strict control over consumer protection and domestic currency flows.