Reports claim Thailand is making efforts to become one of a number of countries in Asia to have shown a shift in its treatment of digital assets this year.
Thailand’s Finance Ministry will reportedly issue 5 billion baht (about $150 million) worth of a new digital investment token within two months, according to statements made by Finance Minister Pichai Chunhavajira at a Tuesday briefing after the cabinet endorsed the initiative.
The G-Token, as it is called, is a digital token that will be used to raise funds from the public under the current budget borrowing plan. However, Public Debt Management Office Director-General Patchara Anuntasilpa said at the Tuesday briefing that it should not be mistaken for a debt instrument.
Thailand unveils G-Token
The G-Token launch reportedly comes after Thaksin Shinawatra, Prime Minister Paetongtarn Shinawatra’s father and de facto chief of the ruling Pheu Thai Party, in January urged Thailand to consider issuing stablecoins backed by government bonds, making them available for retail and institutional investment.
Pichai stated at the briefing that investors can invest with a small amount of cash for the tokens and are assured higher earnings than bank deposits.
As it stands, Thai banks offer 12-month deposit interest rates of about 1.25% to 1.5%, below the Bank of Thailand’s benchmark interest rate of 1.75%. It is the lowest interest rate the country has seen in two years and is a side effect of Trump’s all-out assault on global trade, which worsened the outlook for economic growth.
According to Pichai, G-Token is considered an investment token, and the new investment offering meets all of the Bank of Thailand’s conditions. The initial 5 billion baht issue is designed to “test the market,” he has said.
Thailand joins other Asian countries warming up to cryptocurrency
Thailand is embracing crypto, but it is not the only Asian country in that category. Several other Asian countries have also signaled shifts in their approach to cryptocurrency in recent times, gravitating toward more supportive or clarified regulatory frameworks to encourage innovation while addressing the risks involved.
One Asian country that stands out especially for its stance towards crypto is Singapore. It is already famous for its innovation and embrace of the digital asset world. It has now set its sights on becoming a global crypto hub using a balanced regulatory approach that encourages innovation without compromising on consumer protections.
Hong Kong is another Asian region that has changed its cautious stance towards crypto, instead becoming more positive, focusing on regulated innovation. There have even been reports of deliberations about a strategic Bitcoin reserve.
Japan also makes the list. The country used to have strict regulations, but that has changed, and it has taken on a more progressive stance, easing barriers to crypto adoption and even encouraging Web3 development.
While it is not entirely true that crypto was not a thing in these countries before Trump’s administration, many have attributed the new wave of positivity towards crypto to the US president’s friendly outlook on the digital asset industry.
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