Thailand SEC Holds Hearing on G-Token Standards: Clarity for Government Digital Tokens

The Thai Securities and Exchange Commission (SEC) held a public hearing focusing on the standards for government digital tokens, known as G-Tokens. The SEC aims to clarify regulations by categorizing these tokens under the Digital Asset Act and subject them to their oversight. Notably, G-Tokens will be prohibited from being used for payment purposes. Previously, the Thai Ministry of Finance announced plans to issue 5 billion baht in new digital investment tokens within two months. This initiative has received cabinet approval and Finance Minister Pichet stated that these tokens are intended as a digital tool for public fundraising, distinct from debt securities. Initial issuance is designed for market testing with returns projected to surpass bank deposit rates (currently around 1.25% – 1.5%). The Bank of Thailand recently lowered the benchmark interest rate to a two-year low of 1.75%.