Thailand is reportedly considering launching a bond-backed stablecoin, a move that could transform its financial landscape. The country’s finance minister is said to have discussed the concept with the Securities and Exchange Commission (SEC), exploring the issuance of a stablecoin tied to government bonds, according to sources from Jinshi. However, there has been no official confirmation of these discussions.
If Thailand proceeds with a bond-backed stablecoin, it could set a new precedent in Southeast Asia’s digital asset space, aligning with the government’s broader push for crypto adoption.
Crypto Sandbox in Phuket & Thailand’s Digital Ambitions
Thailand has been making headlines with its progressive stance on crypto. The country recently announced the launch of a crypto sandbox in Phuket by October 2025, an initiative designed to test stablecoins in real-world use cases.
This sandbox is expected to facilitate secure crypto transactions in a controlled environment, particularly within the tourism industry. Given Phuket’s status as a global travel hub, the pilot project could showcase how state-backed stablecoins enhance financial transactions.
At an ASEAN economic meeting, former Prime Minister Thaksin Shinawatra emphasized the importance of government-backed digital assets in modern financial systems.
He cited the increasing global acceptance of stablecoins, particularly in jurisdictions like Singapore and Hong Kong, where both private and state-backed stablecoins are integrated into financial frameworks.
Thaksin Shinawatra’s Pro-Crypto Push: Bond-backed Stablecoin
Thailand’s renewed interest in bond-backed stablecoins follows public remarks from Thaksin Shinawatra. Speaking at a Bangkok event on Jan. 13, he urged Thailand’s financial sector to embrace crypto innovation, highlighting the potential influence of incoming U.S. President Donald Trump’s pro-crypto stance.
“Thailand needs to modernize its financial infrastructure,” said Shinawatra. “Stablecoins backed by real-world assets can enhance liquidity, reduce volatility, and position Thailand as a leader in digital finance.”
His statements come amid Thailand’s broader exploration of crypto for payments, with Phuket being considered a potential testing ground.
Regulatory clarity is crucial for Thailand’s bond-backed stablecoin ambitions. Jomkwan Kongsakul, Deputy Secretary-General of the Thai SEC, recently mentioned the overlap between the SEC and the Bank of Thailand regarding bond-backed stablecoin regulations.
Currently, the Bank of Thailand is advancing its Programmable Money initiative, which could play a role in integrating bond-backed stablecoins into the national financial ecosystem.
While private stablecoins remain a contentious issue, a government-backed alternative could mitigate risks and enhance financial stability.
The Economic Impact of a Bond-Backed Stablecoin
A bond-backed stablecoin could significantly benefit Thailand’s economy by:
Enhancing financial security: Government bonds provide a stable collateral base, reducing the volatility seen in traditional crypto assets.
Boosting foreign investment: A stablecoin tied to Thai bonds could attract institutional investors looking for regulated digital asset exposure.
Facilitating cross-border payments: A government-backed digital currency could streamline international transactions, particularly within the ASEAN region.
Sopnendu Mohanty, Chief FinTech Officer at the Monetary Authority of Singapore (MAS), noted the importance of stablecoins in modern economies. “State-backed stablecoins provide a trusted and regulated alternative to private digital assets, ensuring greater adoption across financial sectors.”
Thailand’s interest in bond-backed stablecoins aligns with broader regional developments.
Singapore: The MAS has integrated private stablecoins into its financial ecosystem while exploring a state-backed digital currency.
Hong Kong: The city has introduced a framework allowing regulated stablecoin issuers, bridging the gap between traditional finance and digital assets.
Malaysia & Indonesia: Both countries are considering central bank digital currencies (CBDCs), a move closely related to the bond-backed stablecoin concept.
As Thailand positions itself within this evolving landscape, a state-backed stablecoin could serve as a secure, regulated alternative to existing private stablecoins.
Is Thailand Ready for a Bond-Backed Stablecoin?
While the Thai government has yet to confirm its stance on a state-backed stablecoins, ongoing discussions suggest a strong interest in stable digital assets.
If implemented, Thailand could lead the way in state-backed stablecoins, providing a secure and regulated alternative in the growing digital economy.
With the crypto sandbox in Phuket launching in 2025, Thailand is laying the groundwork for broader stablecoin adoption. As global financial systems evolve, a bond-backed stablecoin could be a game-changer for Thailand’s financial future. Get more from The Bit Gazette
