What Happened?
The Thai government plans to launch a new digital token named G-Token within the next two months, with an initial issuance scale of approximately 5 billion Thai Baht (about 150 million USD). The purpose of this initiative is to raise funds from the public.
This token is defined as an investment token used for public financing, but it is not a traditional debt instrument. The Finance Minister stated that the design of G-Token will offer potential returns higher than current bank deposit rates.
The issuance of G-Token aligns perfectly with Thailand’s overall trend of increasing openness towards digital assets, influenced by discussions among politicians, including former Prime Minister Thaksin, regarding the application of digital assets. It also represents an initial attempt by the government to “test the market” reaction to such new investment products.
A New Chapter for Thailand’s Digital Assets: Government’s 150 Million USD G-Token Draws Attention
Driven by the global digital asset wave, the Thai government has shown an active stance towards embracing innovation. Recently, the Ministry of Finance announced an eye-catching plan to issue a brand new digital investment token within the next two months.
Finance Minister Pichai Chunhavajira announced that the Ministry of Finance plans to issue a new type of digital investment token worth 5 billion Thai Baht (approximately 150 million USD) within the next two months. This issuance plan has been approved by the Thai Cabinet.
The digital token, referred to as “G-Token,” primarily aims to raise funds from the public under the current budget borrowing scheme. Although it is used for fundraising, Pachara emphasized that G-Token does not belong to debt instruments but rather is a digital investment token.
Finance Minister Pichai indicated that the issuance of G-Token will provide investors with a new investment channel, and it is expected to yield returns higher than bank deposits.
Pichai emphasized that G-Token is positioned as an investment token and meets all relevant conditions of the Bank of Thailand. He explained that the initial issuance scale of 5 billion Thai Baht is intended to “test the market” response.
Currently, the 12-month deposit rates in Thai banks are around 1.25% to 1.5%, lower than the Bank of Thailand’s benchmark rate of 1.75%. The Bank of Thailand has lowered the benchmark rate to a two-year low in April. Pichai stated that investors can participate in investing in G-Token with smaller amounts.
Thailand’s Shift in Attitude Towards Digital Assets
In recent years, the global financial landscape has rapidly evolved with the rise of blockchain technology and cryptocurrencies, prompting governments worldwide to reassess and adjust their strategies towards these emerging assets.
As Thailand’s attitude towards digital assets becomes increasingly open, the Thai government is demonstrating its determination to actively embrace this emerging technology through concrete actions.
This trend is reflected in discussions among government officials; for instance, the current Prime Minister’s father, who is also the de facto leader of the ruling party, Thaksin Shinawatra, publicly called in January for Thailand to consider issuing a government bond-backed stablecoin, making it accessible to both retail and institutional investors. This aligns with the global and regional momentum of exploring digital assets.
Thailand, now alongside other Asian countries like Malaysia and Japan, is showing a greater willingness to engage in and promote innovations in digital assets. Reports have indicated that Thailand is considering allowing Bitcoin ETFs to be listed on local exchanges.
This issuance plan also coincides with a global trend where many countries and traditional financial institutions are gradually accepting blockchain and digital asset investment tools.
Against this global backdrop, Thailand’s attitude towards digital assets is undergoing a significant transformation, shifting from initial caution to a more open and proactive exploration. This change is not only evident in the gradual improvement of regulatory frameworks but also reflected in discussions among high-level decision-makers and concrete actions.
The Thai government is beginning to recognize the potential of digital assets in innovative financing, improving financial efficiency, and even attracting international investment, seeking to incorporate digital assets into broader economic development considerations under manageable risk. This change in attitude lays the foundation for Thailand’s future development in the digital finance sector.
Reference: the block, bloomberg