Global cryptocurrency platform Coinbase plans to introduce stablecoins pegged to the Thai baht and Philippine peso as part of its focus on Southeast Asia, according to a report. nikkei asia.
The company currently has no plans to directly enter Southeast Asian jurisdictions.
Instead, the company is focusing on its wallet business and blockchain platform Base to drive blockchain adoption by enabling local developers to create solutions for baht and peso stablecoins.
Jesse Pollak, founder of Base and head of Coinbase Wallet, explained that stablecoins tied to local currencies make transactions faster, cheaper, and more accessible.
He said blockchain technology could simplify onboarding by bringing local currencies “on-chain,” giving users seamless access to digital financial systems without having to fundamentally rethink their existing relationship with money. He said he could provide it.
Coinbase plans to hire country leaders from Thailand and the Philippines to work with developers, regulators, and content creators to accelerate innovation and adoption of blockchain-based solutions.
Stablecoins gaining regulatory traction in Southeast Asia
Thailand and the Philippines have already demonstrated regulatory tolerance for stablecoins.
Thai regulators approved the first cross-border payment solution using stablecoins in October, and the Philippine Central Bank began piloting a peso stablecoin earlier this year.
Pollack emphasized that stablecoins are not intended to replace national currencies, but to modernize traditional financial systems.
Coinbase’s Base platform, which operates as the second layer of the Ethereum blockchain, showcased its potential at Devcon, an Ethereum-focused trade show in Southeast Asia.
During the event, participants, including non-Thai participants, were able to exchange dollar stablecoins for baht stablecoins without exchange fees.
this is, rubya Baht stablecoin wallet developed by Siam Commercial Bank (SCB) in collaboration with Base.
SCB is currently working with Thai regulators to evaluate the success of the pilot program and secure approval for the wider rollout of the stablecoin wallet.
Stablecoins also address financial inclusion challenges. Thailand’s PromptPay system, a widely used QR code payment platform, is only available to Thai nationals and residents, leaving nearly 30 million tourists annually dependent on traditional currency exchange and associated fees.
Mr. Pollack highlighted how stablecoins can help bridge this gap and enable smoother transactions for tourists and expatriates.
Featured image credit: Edited from freepic
