Thailand has continued to address the issues arising in the crypto market keenly to change its stance towards digital assets and become more friendly; in a most recent development, the Finance Ministry of Thailand announced the launch of digital tokens worth $150 million.
The yet-to-be-launched token will enable regulated people/retail investors to invest in government-backed projects similar to buying government bonds.
It is worth noting that the Thai FM plan has gotten a green signal from the cabinet. The token will be called a ‘G-token’ and is expected to be launched in the following two months.
With this development, the director general of the public debt management office, Patchara Anuntasilpa, said, “ One big selling point of the token is that it allows more retail investors to become part of the digital economy.” he added that for little $3, they can invest in government bonds.”
1st batch of minted tokens will help identify the market response
Speaking over the tokenization move the the Finance Minister of Thailand said, the first batch of tokens is being minted mainly to see how the market responds. He added that people who invest in these tokens will make more profit than they usually get from banks.
Yet he didn’t clarify the percentage of interest or yield that can be earned. As per some experts, the lower interest of 1.25% in fixed deposits offered by commercial banks is expected to help this tokenization gain traction among investors.
It has been reported several times that Thailand is eyeing a bigger spot in the digital assets market, as in terms of tourism, it is ranked among the 5 most visited places with fast-forward tourism and culture.
After the global pandemic, the visit by international tourists in Thailand has fallen significantly, but in 2024, the nation welcomed around 35 million people from all over the globe and generated more than $50 billion from the tourism industry.
In 2023, the tourism revenue of Thailand was $35 billion, but at one time, the revenue was above $60 billion in 2019. With shifting political power in the nation, an inclination of the nation has been towards cryptocurrencies.
In an attempt to boost the pandemic-affected tourism industry, the Tourism Authority of Thailand (TAT) revealed intentions to start luring bitcoin owners, especially affluent “crypto tourists,” in 2021.
In order to facilitate digital token payments for travel-related services, the TAT sought to work with regulators, the Bank of Thailand, the SEC, and Bitkub Online Co.
By 2022, a “crypto-positive” environment was to be established, which included creating a digital wallet and releasing a utility token unique to TAT.
