The Bank of Thailand (BOT) on Friday published guidance on stablecoins and also called for input on a regulatory consultation.
The BOT grouped stablecoins into two, distinguishing stablecoins backed by the country’s currency, the baht, from the rest.
The bank’s baht-centric approach is different from other central banks that distinguish between fiats and non-fiats, for instance a stablecoin whose value is tied to the US dollar and a stablecoin pegged to the price of gold.
📌📋 Stablecoins Regulation Policy
👉 The following guidelines appropriate for the regulation of financial services involving stablecoins
— Bank of Thailand (@bankofthailand) March 19, 2021
The BOT calls stablecoins intended for everyday use “e-Money”, in line with terminology from the country’s Payment Systems Act of 2017.
Anyone who wants to offer a baht-backed stablecoin must ask the BOT for permission, it said.
The BOT highlighted that this policy is aligned with international standards, citing the United Kingdom, Singapore, and Japan.
But the BOT said much less about the second type, ”other forms of stablecoins.”
It’s a broad category that includes asset-backed stablecoins and algorithmic stablecoins, but also foreign currency-backed stablecoins.