Thailand's Finance Ministry is set to issue 5 billion baht (approximately $150 million) in digital investment tokens dubbed "G-Tokens" within two months. This initiative is part of the government’s broader budget borrowing strategy and represents a significant shift towards blockchain-backed public fundraising.
The G-Tokens will be offered under the national budget borrowing plan but will not be classified as traditional debt instruments. This approach allows the government to raise funds without adding to public debt, thereby diversifying funding sources. The tokens aim to provide retail investors with accessible investment opportunities, allowing participation with small amounts of capital and offering potentially higher returns than traditional bank deposits, which currently yield 1.25% to 1.5% amid a benchmark interest rate cut to 1.75% by the Bank of Thailand.
Finance Minister Pichai Chunhavajira and the cabinet have affirmed that these tokens comply with central bank regulations, aligning with Thailand’s push towards digital finance innovation. The G-Token is designed to complement traditional bond offerings and attract a broader demographic of savers seeking alternative income sources in a low-rate environment. If the pilot phase sees strong demand, further issuances may follow.
This development places Thailand among Asian countries integrating blockchain technologies into public finance mechanisms, showcasing a government-backed effort to modernize fundraising and promote regulated digital financial assets. Prior advocacy for government bond-backed stablecoins by figures such as former Prime Minister Thaksin Shinawatra underscores the political support behind such innovations.
Thailand's blockchain G-Token initiative reflects regional momentum towards leveraging digital assets in fiscal policy and investment markets, with potential spillover impacts on both retail and institutional finance sectors.