Thailand Issues 5 Billion Baht in Digital Investment Tokens

The Thai government has announced plans to issue 5 billion baht ($150 million) worth of digital investment tokens, known as G-Tokens, to raise funds from the public. This initiative was endorsed by the cabinet and is part of the current budget borrowing plan. The initial issuance of 5 billion baht is intended to gauge market response, according to Finance Minister Pichai Chunhavajira.

The decision to issue these tokens follows a request from former Prime Minister Thaksin Shinawatra earlier this year, who suggested that the nation consider issuing stablecoins backed by government bonds. This move aligns with Thailand's broader efforts to expand its cryptocurrency landscape. Last year, the nation implemented a tax exemption for crypto earnings, and its Securities and Exchange Commission recently added stablecoins USDC and USDT to its list of approved cryptocurrencies for trading on digital exchanges.

Chunhavajira highlighted that investors will have the opportunity to invest in these new tokens with a relatively small amount of cash, offering higher returns compared to traditional bank deposits. Currently, banks in Thailand offer 12-month deposit interest rates ranging from 1.25% to 1.5%, which are below the nation's central bank policy rate of 1.75%.

This initiative marks a significant step for Thailand in embracing digital assets and blockchain technology. By issuing G-Tokens, the government aims to attract a wider range of investors and provide them with an alternative investment option that offers potentially higher returns. This move also reflects the government's commitment to fostering innovation in the financial sector and staying competitive in the global digital economy.

The issuance of G-Tokens is expected to not only raise funds for the government but also to stimulate interest in digital investments among the public. As Thailand continues to develop its regulatory framework for cryptocurrencies, initiatives like this one are likely to play a crucial role in shaping the future of digital finance in the region.