Thailand is reportedly considering the prospects of bond-backed stablecoins to shore up its innovation.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Thailand is allegedly exploring the viability of stablecoins that government bonds would back in its sustained crypto push. So far, no official announcement or acknowledgment has been made. Still, sources from Jinshi hinted at a meeting between Thailand’s Finance Minister Pichai Chunhavajira and the Securities and Exchange Commission (SEC).
Pending when it is eventually confirmed, the speculation comes only a few weeks after Thaksin Shinawatra, the former Prime Minister of the Asian country, urged that it adopt a more crypto-friendly stance. Shinawatra pointed to Donald Trump, citing his pro-crypto efforts in the United States. He acknowledged that these moves could serve as a potential influence on global financial policies.
On this premise, he called on Thailand SEC to be more receptive to crypto. His advocacy is not limited to stablecoins but any other assets backed by real-world assets. Shinawatra suggested that Thailand’s government is already considering using crypto assets for payment. As part of the plan, the island of Phuket is the site for a pilot project.
This initiative aims to improve user experience and create new regional business opportunities.
Similarly, the deputy secretary-general of the Thai SEC Jomkwan Kongsakul mentioned earlier the potential overlap of guidance on baht-backed stablecoins. This is between the SEC and the Bank of Thailand, which is working with the Programmable Money initiative.
Another initiative that reflects Thailand’s effort towards a crypto-friendly stance is the potential launch of local Bitcoin (BTC) Exchange Traded Funds (ETFs).
It is focused on enabling individual and institutional investors to trade Bitcoin ETFs on domestic exchanges directly. Noteworthy, One Asset Management had initially introduced a fund offering indirect exposure to overseas Bitcoin ETFs.
Still, there was a void for direct investments in Bitcoin BTC $84 076 24h volatility: 3.7% Market cap: $1.67 T Vol. 24h: $30.87 B , but this gap could be addressed with the new ETF launch proposal. Ultimately, this reflects Thailand’s response to rising competition in the region. In regions like Hong Kong, Singapore, and the US, the concept of a comprehensive digital currency framework has long taken shape.
Secretary-General of the Thai SEC Pornanong Budsaratragoon highlighted the growing global adoption of cryptocurrencies. She thinks it is important that Thailand adapt to this trend, as it could expand investment options for investors in the nation. It can equally safeguard them with strong regulatory measures.
With the inauguration of a new administration, the US is at the helm of its crypto affairs.
A week ago, President Donald Trump signed an executive order to establish the “Presidential Working Group on Digital Asset Markets”. This move marked the beginning of a major shift in the approach to the US to digital assets. The initiative is focused on developing a federal regulatory framework for digital assets.
This includes stablecoins, while the group explores the creation of a “strategic national digital assets stockpile”.
Interestingly, Trump excluded members of the Federal Reserve or the Federal Deposit Insurance Corporation (FDIC) from the group. Some proponents believe this move is a long-overdue correction, but others question the implications for financial oversight.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
