Thailand to issue 5 billion baht in digital tokens to raise funds.
Tokens offer returns higher than traditional deposits.
SEC involved in managing blockchain ecosystem.
Thailand’s Finance Ministry announced its intention to issue digital investment tokens worth 5 billion baht ($150 million) in Bangkok as part of a public fundraising strategy.
This move signifies a pivotal step in Thailand’s financial modernization, aiming to enhance access to state investments and returns.
Thailand’s Finance Ministry, led by Minister Pichai Chunhavajira, plans to issue digital investment tokens called G-Tokens, valued at 5 billion baht. Approved by the cabinet, this initiative allows public participation with smaller amounts, providing higher returns than traditional banking options.
The G-Tokens will be issued within two months under Thailand’s budget borrowing plan, designed to raise funds directly from the public while offering better returns than traditional bank deposits. — Pichai Chunhavajira, Finance Minister of Thailand
G-Tokens, issued under Thailand’s budget borrowing plan, mark a significant shift in the government’s fundraising approach. Interest rates are projected to surpass current bank deposit rates. The government sees this as a test phase, with possible expansion based on market demand.
Market responses indicate a cautious optimism, anticipating increased liquidity and accessibility in Thailand’s financial system. Notable support from Thailand’s SEC underscores the regulatory readiness and potential boost to public sector financing.
Blockchain Technology as a Regional Fintech Trendsetter
Did you know? Thailand has progressively embraced blockchain finance, launching a digital token trading platform for multi-chain interoperability, signaling ongoing innovation across Asia.
Thailand’s move to issue G-Tokens aligns with a broader regional shift toward utilizing blockchain technology in finance. Historical trends suggest that digital assets could become a central part of public financing models, with other nations likely to observe Thailand’s outcomes closely.
Greater integration of digital tokens into national finance can reduce costs and streamline financial operations. This step may encourage more governments to consider digital solutions for public debt and investment management, potentially paving the way for crypto’s role in traditional finance systems.
