Thailand’s government is reportedly exploring the possibility of issuing stablecoins backed by government bonds, according to recent reports. This development comes as the country prepares to launch a crypto sandbox in Phuket in 2025.

Government Stablecoins: A New Development in Thailand’s Crypto Space

On January 30, sources revealed that Thailand’s Finance Minister discussed the potential issuance of government-backed stablecoins during a meeting with the Securities and Exchange Commission (SEC). Although this information has not been officially confirmed, it suggests that the government is considering the use of stablecoins as a means to promote innovation and economic growth.

Former Prime Minister’s Influence on Crypto Adoption

Thailand’s former Prime Minister, Thaksin Shinawatra, has been a vocal advocate for the adoption of cryptocurrencies in the country. On January 13, he encouraged financial institutions to adopt a more crypto-friendly stance, citing the potential influence of the US on global financial policies. Shinawatra also urged the Thai SEC to adopt a more digital approach, advocating for the trading of stablecoins or other assets backed by real-world assets.

Shinawatra mentioned that the Thai government is exploring the use of cryptocurrency for payments, with Phuket being considered as a potential site for a pilot project. This move is seen as a significant step towards promoting the use of cryptocurrencies in Thailand.

Phuket’s Crypto Sandbox: A Step Towards Innovation

On January 19, Thailand revealed plans to launch a crypto sandbox in Phuket in October 2025. The sandbox is an initiative to allow businesses and consumers to try out crypto transactions safely in a risk-free environment, using stablecoins. This move is expected to promote innovation, especially within the tourism industry.

Overlapping Guidance on Stablecoins

Jomkwan Kongsakul, deputy secretary-general of the SEC, mentioned the potential overlap of guidance on baht-backed stablecoins between the SEC and the Bank of Thailand. This highlights the need for clear regulations and guidelines on the use of stablecoins in Thailand.

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

Stablecoins have the potential to play a significant role in promoting economic growth and innovation in Thailand. With the launch of the crypto sandbox in Phuket, the country is taking a major step towards embracing the use of cryptocurrencies.

For more news on the latest developments in the cryptocurrency space, visit Global Crypto News.

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