G-Token Implications and Risks for the Financial System Under State-Issued Digital Instruments in Thailand

Narong Kiettikunwong () and Wanida Sangsarapun
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Narong Kiettikunwong: College of Local Administration, Khon Kaen University, Khon Kaen 40002, Thailand
Wanida Sangsarapun: Faculty of Law, Khon Kaen University, Khon Kaen 40002, Thailand

JRFM, 2025, vol. 18, issue 10, 1-22

Abstract: As governments increasingly explore digital financial instruments to diversify funding channels and expand citizen participation, Thailand’s G-Token represents an early attempt to integrate blockchain technology into sovereign debt issuance. This study examines its potential implications through a multi-dimensional risk and governance framework, situating the analysis within both domestic regulatory structures and international benchmarks. The evaluation considers macroeconomic effects—such as potential shifts in monetary policy transmission, bank disintermediation risks, and systemic liquidity impacts—alongside micro-level concerns involving investor protection, market integrity, and financial literacy. Using comparative analysis with the European Union, Singapore, and United States regulatory approaches, the paper identifies critical gaps in legal classification, oversight maturity, and structural safeguards. Findings indicate that while Thailand’s design—particularly its separation from payment systems—supports monetary coherence, its ad hoc legal integration, reliance on administrative investor protections, and early-stage market infrastructure pose vulnerabilities if adoption scales. The study concludes that achieving long-term viability will require explicit statutory authorization, enhanced disclosure and governance standards, strengthened interagency oversight, and inclusive market access strategies. These insights provide a structured basis for emerging economies seeking to adopt government-backed tokenized instruments without undermining financial stability or public trust.

Keywords: state-issued digital instruments; financial system risk; public sector innovation; monetary transmission mechanism; digital financial policy; emerging market finance (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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