Thailand Launches “G-Token” to Revolutionize Government Borrowing and Public Investment
News Story:
BANGKOK – Thailand has announced the rollout of its first government-backed digital token, known as the “G-Token” or “Thailand Digital Token,” marking a significant step in modernizing public investment and diversifying state borrowing mechanisms.
Approved by the Cabinet, the Ministry of Finance plans to issue G-Tokens worth approximately 5 billion baht within the next one to two months. This innovative digital financial instrument is positioned as a new version of government debt, similar to traditional bonds but built on digital infrastructure.
The G-Token initiative is grounded in existing legal frameworks, including the Public Debt Management Act of 2005, which authorizes the Ministry to borrow funds, and the Digital Asset Business Decree of 2018, which governs digital token issuance under the oversight of the Thai Securities and Exchange Commission (SEC).
Unlike traditional bonds, G-Tokens offer enhanced accessibility and flexibility. They can be traded via licensed digital asset exchanges, making it easier for retail investors, non-profit organizations, and eligible legal entities to invest in public debt with lower entry barriers.
To invest, individuals must open accounts with SEC-approved platforms, review token prospectuses detailing terms such as interest rates and maturity, and complete purchases through authorized digital brokers or exchanges. Once purchased, G-Tokens will be credited to the investor’s digital asset account, and investors will be entitled to periodic interest payments and full principal repayment upon maturity.
The Ministry of Finance emphasized that interest payments and redemptions will be processed electronically, according to the schedule detailed in the token’s offering documents.
While the initiative presents exciting opportunities, the Ministry cautioned investors to consider factors such as limited secondary market liquidity, the need for basic digital asset literacy, potential regulatory changes, and the sensitivity of token value to interest rate movements.
With the G-Token launch, Thailand positions itself at the forefront of digital finance innovation in the public sector, aiming to democratize access to government investment opportunities while modernizing state fundraising strategies.
