The Ministry of Finance is set to launch 5 billion baht worth of new digital investment tokens within the next two months, announced Finance Minister Pichai Chunhavajira on Tuesday.
Named G-Token, these tokens will be utilized to raise funds from the public under the current budget borrowing plan, although they will not function as a debt instrument, clarified Patchara Anuntasilpa, director-general of the Public Debt Management Office.
A significant advantage of the token is that it enables more retail investors to participate in the digital economy. Individuals can invest in government bonds starting from just 100 baht, according to Mr. Pichai.
This initiative follows a call in January from Thaksin Shinawatra, the father of Prime Minister Paetongtarn Shinawatra and the de facto leader of the ruling Pheu Thai Party, to explore the issuance of stablecoins backed by government bonds for both retail and institutional investment.
Thailand joins several Asian countries this year in signaling a progressive approach toward digital assets.
“Investors can contribute small amounts of cash for these new tokens,” Mr. Pichai noted. “They will also earn a higher return than traditional bank deposits.”
Currently, Thai banks offer 12-month deposit interest rates of approximately 1.25% to 1.5%, which is below the Bank of Thailand’s benchmark interest rate of 1.75%.
Mr. Pichai emphasized that the G-Token is classified as an investment token, stating that the offering complies with all requirements set by the Bank of Thailand. It will not be classified as a cryptocurrency but can be traded on licensed digital asset exchanges.
The initial issuance of 5 billion baht is intended to “test the market,” he added.
