SCB 10X, the fintech arm of SCBX Group, has developed a Thai Baht stablecoin THBX in collaboration with Siam Commercial Bank (SCB) and technology partners. It employs Singapore’s concept of Purpose Bound Money which uses smart contracts to impose conditions around the coin. The stablecoin and Rubie wallet are part of a sandbox pilot overseen by the Bank of Thailand and the Thai Securities and Exchange Commission.
The stablecoin can only be used by foreign visitors to the Ethereum Devcon event currently taking place in Thailand. Stablecoin holders can use THBX for retail payments by scanning QR codes at roughly 100 participating merchants.
It’s a smart move because foreign exchange is one of the biggest frictions that stablecoins can address. Plus, tech-savvy Devcon users are going to be far more forgiving if the usability isn’t perfect. We observed in another stablecoin experiment conducted by SBC TechX on Hedera that disclosing gas fees to mainstream users might be off putting.
How the stablecoin works
To gain access to THBX, the user has to download the SCB 10X Rubie wallet and go through know your customer (KYC) compliance. The user then swaps the USDC stablecoin on the Base blockchain for THBX. That exchange happens via InnovestX, another SCBX company and digital asset broker. The THBX tokens are only usable from November 5 to 25.
“At SCB 10X, we believe that participating in BOT & SEC regulatory sandbox will be a significant move for financial innovation to global financial inclusion as well as the Thai digital asset ecosystem,” said Mukaya Tai Panich, CEO and CIO of SCB 10X. “THBX is designed to provide international visitors with a seamless payment experience, and we are proud to be at the forefront of this transformation in Thailand’s digital economy.”
Other partners in the project include Fireblocks, which provides the wallet technology, blockchain analytics firm Elliptic, USDC stablecoin issuer Circle, and Base, the layer 2 blockchain founded by Coinbase.
