Bangkok: The Cabinet has approved a proposal from the Ministry of Finance to issue digital tokens, marking a significant move towards allowing small investors to participate in fundraising efforts intended to address the budget deficit of 2015.
According to Thai News Agency, Deputy Government Spokesperson Ms. Sasikarn Wattanachan announced that this approval involves an adjustment to the public debt management plan, granting the Ministry of Finance the authority to raise funds through the issuance of digital tokens. This mechanism is designed to facilitate borrowing for offsetting the budget deficit within a specified framework. The Ministry will engage digital token distributors, including brokers and licensees, to establish guidelines for transferring and accepting these tokens. This initiative represents a novel fundraising mechanism, granting retail investors access to fundraising opportunities. The Ministry will also set the interest rate and payment dates associated with these digital tokens.
The issuance of the government digital token, referred to as the Government Token (G-Token), is aligned with the Public Debt Management Act. It supports loans, debt restructuring, and state enterprise loan guarantees under the fiscal year 2025 public debt management plan. The Ministry of Finance is tasked with managing associated risks. Specific requirements include the OCS issuing digital tokens within the loan framework to mitigate the budget deficit, assigning representatives for various actions, and setting criteria and conditions for offering digital tokens to eligible buyers.
The G-Token issuance process stipulates that the transfer of tokens is complete upon recording the transfer in the recipient's account. These tokens are not classified as debt instruments under the Securities and Exchange Act B.E. 2535 but fall under the Digital Asset Business Act B.E. 2561. Compliance with this act and SEC regulations is mandatory, and relevant agencies' opinions will be considered for subsequent actions.
Reporters have noted that the 2025 budget framework outlines an expenditure budget of 3.6 trillion baht, marking an increase from the previous fiscal year, resulting in a budget deficit of 713 billion baht. Fundraising through the issuance of digital tokens, utilizing blockchain technology, is part of a project plan that details objectives and fund usage. Tokens can be created on platforms like Ethereum or Binance Smart Chain and purchased using digital or fiat currencies. This approach simplifies investor access, reduces financial procedures, and enhances transparency via blockchain, although token price volatility remains a risk.