Thailand reportedly weighing bond-backed stablecoins but no official word

Phuket’s crypto sandbox is set for 2025, but new reports suggest Thailand’s government may also be quietly exploring stablecoins.

On Jan. 30, reports emerged that Thailand’s Finance Minister, during a meeting with the Securities and Exchange Commission, revealed that the government is exploring the possibility of issuing stablecoins backed by government bonds, according to sources from Jinshi. However, it’s important to note that this information has not been officially confirmed.

This move follows statements made by Thailand’s former Prime Minister, Thaksin Shinawatra, who, at an event in Bangkok on Jan. 13, encouraged the country’s financial institutions to adopt a more crypto-friendly stance, Reuters reported.

Thaksin pointed to the pro-crypto position of incoming U.S. President Donald Trump as a potential influence on global financial policies. He specifically urged the Thai SEC to adopt a more digital approach, advocating for the trading of stablecoins or other assets backed by real-world assets.

In addition, Thaksin mentioned that the Thai government is exploring the use of cryptocurrency for payments, with the island of Phuket being considered as a potential site for a pilot project.

Adding to this discussion, Jomkwan Kongsakul, deputy secretary-general of SEC, mentioned the potential overlap of guidance on baht-backed stablecoins between the SEC and the Bank of Thailand, which is working with the Programmable Money initiative.

Thailand’s crypto adoption

On Jan. 19, Thailand revealed plans to launch a crypto sandbox in Phuket in October 2025. In an ASEAN-wide economic meeting, the initiative was also introduced by former PM Shinawatra.

The sandbox is an initiative to allow businesses and consumers to try out crypto transactions safely in a risk-free environment, using stablecoins, as a way to promote innovation, especially within the tourism industry.

Shinawatra, who made headlines recently for advocating for the legalization of online gambling, believes the measure can bring the government annual revenues of around 100 billion baht or about $2.89 billion. 

While the former prime minister has retired from his role in the government, he remains politically powerful, especially as he has passed the baton to his daughter, Prime Minister Paetongtarn Shinawatra. 

Thailand’s interest in stablecoins is aligned with a wider Southeast Asia trend, where government-backed stablecoin has a major role to play. Private stablecoins and government-backed stablecoins have been integrated in Singapore and Hong Kong via their regulatory frameworks.