The Thai Ministry of Finance has announced the launch of G-Token, a digital currency platform aimed at expanding public access to government investment opportunities. The initiative will partially replace traditional government bonds with Government Tokens (G-Tokens), complying with the Bank of Thailand’s 1958 Currency Act.
The G-Token initiative modernises existing government fundraising mechanisms, transitioning from institutional investors to a more accessible digital platform for retail investors with lower entry points. Finance Minister Pichai Chunhavajira clarified that G-Token is not a parallel currency but a digital form of government bond assets, allowing retail investors to benefit from higher returns than traditional bank deposits.
Under the Fiscal Year 2025 Debt Management Plan, the Public Debt Management Office will oversee the conversion of select maturing bonds into G-Tokens, with a minimum investment threshold of 20,000 baht. The initiative is also exploring bond tokenisation, which does not require asset collateral, set to be implemented in fiscal year 2025.
While G-Tokens will initially be tradable on the secondary market like conventional bonds, the government plans to expand its functionality to allow G-Token transactions for goods and services. However, concerns regarding technological infrastructure, fraud prevention, and potential impacts on monetary control have been raised by the Bank of Thailand, with discussions ongoing to address these issues.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
