Thailand to Issue $150M Digitized Government Bonds Targeting Retail Investors

Thailand will issue $150 million worth of government bonds, digitised for the general public, to make investments more accessible.

Thailand will be issuing $150 million of government bonds, tokenized and sold to the general public in an effort to make investment opportunities more accessible, a senior official said on Monday.

The Southeast Asian nation’s Ministry of Finance will be organising the issuance of the bonds, which will be sold through the nation’s main cryptocurrency exchanges.

The tokens, named G-tokens, will be used to top up the government’s revenue in the current budget plan, while members of the public will be able to buy the bonds on exchanges to diversify their personal wealth.

“The public can buy the bonds at an affordable price and they will yield more than a savings account at a local bank,” said Finance Minister Pichai Chunhavajira.

At present, Thailand’s banks offer savings accounts with around 1.5% interest, while the G-token will be sold at an initial offering of $150 million, or about 5 billion baht.

The new token will only be available to Thai citizens and it will be sold on the main cryptocurrency exchanges that are licensed to operate in Thailand.

Chunhavajira added that this was just the initial offering and that if this was successful, then the Ministry of Finance would issue more bonds for the public.

The G-token is not a cryptocurrency, nor is it a form of currency. It is a tokenized government bond that is being sold to the public as an investment opportunity.

The government is aiming to stimulate growth by providing more avenues for the public to invest in and at the same time, increase funding for the public sector.

G-tokens combine the benefits of low threshold investing with digitised assets.

Many members of the public may not be interested in investing in government bonds but they may be interested in investing in a token that is sold on a crypto exchange.

The move may also introduce younger traders to the world of bond trading. With the current trade disruptions and economic shortfalls after the pandemic, traders may see more interest in investing in bonds.

Members of the public will be able to buy the G-tokens for as low as 100 baht, or about $3. The Bank of Thailand also helped draft the plan for the bond issuance.

The small amount will allow low-income people to also invest in the token. The tokens will be sold within the next two months.

Government bonds are usually sold at a much higher amount, such as 40 billion baht, compared to the G-token amount of only 5 billion baht.

“The G-tokens are not a form of traditional debt instruments. They are part of a plan to improve the country’s budget borrowing plan and to make financial investments more accessible for the general public,” said Patchara Anuntasilpa, director general of public debt.

The government is aiming to make the bond market more accessible to retail traders. It may also be a good opportunity for citizens to learn more about digital assets.

The move to sell the bonds may also help improve the financial literacy of the general public, which in turn will help protect retail traders from crypto scams.

In January, former prime minister Thaksin Shinawatra, father of current prime minister Paetongtarn Shinawatra, said that the government should start issuing its own stablecoins.

Shinawatra believes that the stock market has suffered due to the public losing trust in financial institutions. He suggested that the government should clamp down on corruption so that people can regain their confidence in the stock market.