The Thai government is exploring innovative avenues for public fundraising by introducing a new digital investment product. This initiative aims to provide citizens with an alternative investment option potentially offering more attractive returns compared to traditional bank savings, while simultaneously supporting state financial needs.
The Ministry of Finance in Thailand has announced plans to issue digital investment tokens valued at 5 billion Baht, equivalent to approximately $150 million. This issuance is slated to occur within the next two months, following approval from the Cabinet. The program is intended to serve as a method for the government to raise funds from the public as part of its ongoing borrowing strategy.
Introducing the G-Token
Referred to as “G-Token,“ this new digital asset is designed to attract investments from a broad base of the public. According to Mr. Patchara Anuntasilpa, the Director General of the Public Debt Management Office, the G-Token is not formally classified as a debt instrument. A key feature highlighted by Finance Minister Pichai Chunhavajira is its accessibility, allowing even individuals with modest capital to invest. The expected yield on these tokens is projected to surpass the returns typically offered by conventional bank deposits.
Current 12-month bank deposit rates in Thailand generally range between 1.25% and 1.5%. For context, the Bank of Thailand’s benchmark policy rate stands at 1.75% as of April, marking its lowest level in two years, according to data from Trading Economics. The G-Token is positioned to offer a more appealing return profile within this interest rate environment.
The launch of the G-Token comes amid growing global interest in government-backed digital assets. Thai Finance Minister Pichai Chunhavajira affirmed that the G-Token complies with all conditions set by the Bank of Thailand for investment tokens. He also indicated that the initial 5 billion Baht issuance will serve as a pilot program to gauge market reception and demand.
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