The Bank of Thailand proposed draft rules requiring baht-denominated stablecoin issuers to back tokens 1:1 with bank deposits and prohibited them from paying interest to holders.
Redemptions must clear within one business day under the central bank’s consultation paper, stripping out speculative yield features to force issuers into functioning strictly as payment tools.
Under the initial phase of the framework, issuers must place all reserve assets in commercial bank accounts. The central bank stated that each issued token requires a full baht counterpart on deposit to guarantee liquidity when users exit to fiat currency.
Later stages could permit issuers to diversify backing into other high-quality liquid assets such as short-dated government securities. For now, capital remains locked exclusively in standard accounts.
Holders will receive zero yield. The paper bars issuers from providing direct or indirect incentives, interest payments, or returns calculated against holding duration or token balances.
The role of the digital payment tool should be clearly distinguished from financial products that offer returns on holdings. The restriction aims to ensure that THB stablecoins function as a means of payment rather than a savings or investment product, the consultation paper stated.
The central bank recommended that Thailand’s Ministry of Finance formally designate token issuers and custodial wallet operators as payment service businesses. That designation pulls every participant directly beneath central bank supervision before they can launch commercial services.
Regulators also want the legal authority to cap the total number of licensed issuers operating in Thailand. Fragmented liquidity across dozens of corporate tokens would weaken settlement stability and leave merchant gateways juggling incompatible digital currencies.
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