The Ministry of Finance plans to issue 5 billion baht worth of new digital investment tokens within two months, Finance Minister Pichai Chunhavajira said on Tuesday.
The so-called G-Token will be used to raise funds from the public under the current budget borrowing plan, although it isn’t a debt instrument, said Patchara Anuntasilpa, director-general of the Public Debt Management Office.
One big selling point of the token is that it allows more retail investors to become part of the digital economy. For as little as 100 baht, they can invest in government bonds, said Mr Pichai.
The launch comes after Thaksin Shinawatra — the father of Prime Minister Paetongtarn Shinawatra and de facto head of the governing Pheu Thai Party — in January called for Thailand to consider issuing stablecoins backed by government bonds, making them available for retail and institutional investment.
Thailand is one of a number of countries in Asia to have signalled a shift in its treatment of digital assets this year.
“Investors can invest with a small amount of cash for the new tokens,” Mr Pichai said. “Investors will earn higher return than banks’ deposits.”
Thai banks currently offer 12-month deposit interest rates of about 1.25% to 1.5%, below the Bank of Thailand’s benchmark interest rate of 1.75%.
The G-Token is considered an investment token, Mr Pichai said, adding that the new offering meets all of the Bank of Thailand’s conditions. It is not a cryptocurrency but will be tradable on licensed digital asset exchanges.
The initial 5-billion-baht issue is designed to “test the market”, he said.