Thailand's Ministry of Finance will test G-Token digital tokens with an issuance scale of 5 billion baht

The Thai Ministry of Finance announced that it will launch a new digital investment token "G-Token" in the next two months, with the first issuance scale reaching 5 billion baht (about 150 million US dollars). The project has been approved by the cabinet, marking a key step for Thailand in the field of digital finance.

Finance Minister Pichai Chunhavajira said at a press briefing that G-Token will be a digital financing tool for the public, but unlike traditional debt securities, it does not constitute a government liability. He emphasized that the product is fully in line with the regulatory standards of the Bank of Thailand and has a legal and compliant technical and financial foundation.

"The main goal of this issuance is to test the market's reaction to new digital investment tools," Pichai said. "G-Token will provide ordinary investors with the opportunity to participate with small amounts of money, and the expected rate of return will be higher than the current bank deposit rate of about 1.25% to 1.5%."

The Bank of Thailand has cut its benchmark interest rate to 1.75% in April, a two-year low, in an effort to stimulate economic growth and increase the market appeal of high-yield investment tools.

The issuance of G-Token is also seen as a response to the domestic call for innovative digital financial instruments. As early as January this year, former Thai Prime Minister Thaksin Shinawatra suggested that the government consider launching a stablecoin backed by national bonds to serve retail and institutional investors.

As the government actively explores the combination of digital assets and public financing, G-Token may become an important pilot project for Thailand to move towards the digital financial era.