Finance Ministry to launch G-Token digital investment platform

The Thai Ministry of Finance has unveiled its innovative G-Token initiative, a digital currency platform designed to broaden public access to government investment opportunities. 

This scheme will partially replace traditional government bonds with Government Tokens (G-Tokens), and is structured to comply with the Bank of Thailand’s (BOT) 1958 Currency Act.

Ministry sources have confirmed that G-Token represents the modernisation of existing fundraising mechanisms, transitioning from a model primarily serving institutional investors to a digital platform accessible to retail investors with significantly lower entry points.

In adherence to Section 9 of the 1958 Currency Act, which mandates ministerial authorisation for any alternative currency, the G-Token initiative falls under the purview of the Minister of Finance. 

Finance Minister Pichai Chunhavajira has emphasised that G-Token is not a parallel currency, but rather a digital transformation of existing government bond assets.

"While the government typically raises 100 billion baht annually through public debt, these instruments are often beyond the reach of those with modest savings," Pichai explained. "G-Token, a stablecoin, will democratise access, allowing individuals to invest directly, offering returns that outpace traditional bank deposits. This is not about creating new money."
 

The G-Token initiative aligns with the Fiscal Year 2025 Debt Management Plan, approved by the Cabinet on March 11, which outlines a comprehensive debt strategy totalling 1,663,295.45 million baht. 

The Public Debt Management Office will oversee the conversion of select maturing government bonds into G-Tokens, with the minimum investment threshold set at 20,000 baht.

Investors in G-Tokens can anticipate returns exceeding those of standard bank deposits. 

Furthermore, the Finance Ministry is exploring the introduction of bond tokenisation, a novel investment avenue without asset collateral requirements, slated for implementation within fiscal year 2025, with an initial allocation of approximately 5,000 million baht.

G-Tokens will initially be tradable on the secondary market, mirroring conventional government bonds. 
 

Looking ahead, the ministry intends to evolve the platform to facilitate G-Token transactions for goods and services.

The government anticipates that G-Token will inject liquidity into the financial system, providing a more lucrative savings option for the general public.

However, the BOT has expressed reservations regarding the technological infrastructure, fraud prevention measures, and the potential impact on monetary control. 

Discussions between the ministry and the BOT are ongoing to address these concerns and ensure the stability and efficiency of the payment system.