Thailand is poised to transform its financial landscape with the recent approval of a draft Electronic Securities Bill by the Cabinet on June 10, 2025. This landmark legislation aims to modernize the country’s capital markets by facilitating the issuance and trading of securities through electronic platforms, marking a significant step into the digital era. As the government pushes forward with initiatives like G-token bonds and the anticipated “Digital Baht,” the move signals a broader ambition to enhance efficiency, accessibility, and competitiveness in Thailand’s financial sector.
A Digital Foundation for Capital Markets
The draft Electronic Securities Bill, endorsed by the Cabinet, seeks to replace outdated paper-based systems with a fully electronic framework for securities trading. This includes everything from recording and transferring data to managing collateral, effectively phasing out traditional script-based certificates. According to Pornanong Busaratrakul, Secretary-General of the Securities and Exchange Commission (SEC), the bill will “make the entire securities trading process electronic” and serve as “the official record” for transactions. This shift is expected to simplify the trading of equity instruments, investment units, and debt instruments, making the market more accessible to retail investors while offering enhanced protections. 
The SEC is also preparing secondary regulations to support the issuance of electronic securities, eliminating the need for physical certificates. These measures, anticipated to be implemented by the end of 2025 pending parliamentary approval, aim to align Thailand’s capital markets with global technological standards. By creating a seamless digital infrastructure, the initiative promises to streamline transactions from issuance to transfer, fostering innovation and competition in the financial sector.
G-Token Bonds and the Digital Baht: Pioneering Financial Tools
Alongside the Electronic Securities Bill, the Thai government is making strides with other digital financial instruments. The Cabinet has approved the issuance of G-token bonds, managed by the Public Debt Management Office (PDMO), which will be offered in a tokenized format. This approach is designed to provide greater flexibility in asset transfers, benefiting investors with a more efficient process. Pongsakorn Sutantayawalee, Chief Product Officer of Bitkub Online Co., Ltd., hailed this as a groundbreaking move, noting that Thailand will be “the first in the world” to issue government bonds as digital tokens. The G-token is slated for launch in August 2025, with the added advantage of being tradable on secondary markets.
Further amplifying Thailand’s digital ambitions is the upcoming introduction of the “Digital Baht,” a tokenized form of currency expected to debut later in 2025. Described by industry experts as a major step forward, this digital currency aims to simplify monetary transactions and enhance financial inclusion. While concerns linger about stringent regulations potentially stifling innovation, many in the industry, including Sutantayawalee, view clear guidelines as a strength. “Knowing what is accepted and what is not makes it easier to invest and do business in Thailand” he said.
Broader Legislative Reforms
The Electronic Securities Bill is part of a larger wave of legislative updates aimed at modernizing Thailand’s financial regulatory framework. On February 14, 2023, the Cabinet approved the principles of four draft bills, including amendments to the Securities and Exchange Act B.E. 2535. These amendments address six key areas, such as supporting electronic processes in the capital market, aligning securities and futures trading regulations with international standards, introducing operational fees, imposing fines for violations, establishing witness protection measures during investigations, and granting investigative powers to SEC officials for specific offenses.
The Finance Ministry, through spokesperson Pornchai Thirraveja, Director of the Fiscal Policy Office, emphasized that these reforms are intended to promote public participation in investments. “The draft Securities and Exchange Act will facilitate the use of technology for creating products and conducting transactions in the capital market” he said, highlighting the potential to improve quality of life and boost competitiveness. The draft electronic securities bill, already reviewed by the Office of the Council of State, focuses on updating provisions to distinguish electronic securities from their paper-based counterparts, ensuring clarity and relevance in a rapidly evolving financial landscape.
Industry Impact and Public Sentiment
The push toward digitalization is already resonating within Thailand’s financial sector. Bitkub, a leading cryptocurrency exchange, boasts approximately 5 million registered users and an average daily trading volume of 2 billion Thai Baht (US$56 million, based on exchange rates as of June 12, 2025). During peak market periods, this volume has surged to as high as 18 billion Thai Baht (US$504 million) per day, underscoring the growing appetite for digital financial products. Industry leaders are also optimistic about potential reforms in cryptocurrency taxation, with hopes that the government may exempt profits from crypto transactions from tax, mirroring the treatment of stocks listed on the Stock Exchange of Thailand (SET).
Public sentiment, as gauged through social media platforms like X, reflects a mix of excitement and cautious optimism. Many users praise the government’s forward-thinking approach, with posts highlighting the potential for digital tools like the G-token and Digital Baht to democratize access to financial markets. However, some express concerns about cybersecurity risks and the readiness of infrastructure to support a fully digital system, urging robust safeguards to protect investors.
Challenges and Opportunities Ahead
While the Electronic Securities Bill and associated initiatives mark a significant leap forward, they are not without challenges. Building the necessary digital infrastructure to support seamless transactions across issuance, sale, and collateral management requires substantial investment and coordination among multiple agencies. The SEC’s collaboration with relevant stakeholders to set transaction standards will be critical to ensuring a smooth transition. Additionally, as Thailand ventures into uncharted territory with government-issued digital tokens, regulatory clarity will be paramount to maintaining investor confidence and preventing misuse.
Yet, the opportunities presented by these reforms are immense. By embracing financial technology, Thailand has the potential to position itself as a regional leader in digital finance, attracting both domestic and international investors. The shift to electronic securities could reduce transaction costs, increase market transparency, and broaden access to capital markets for small and medium-sized enterprises—a key driver of economic growth. Moreover, the introduction of the Digital Baht could pave the way for more inclusive financial systems, particularly for underserved communities with limited access to traditional banking services.
Regional Context and Global Implications
Thailand’s digital finance push comes at a time when Southeast Asia is witnessing a surge in fintech adoption. Neighboring countries like Singapore and Malaysia have already made significant strides in digital payments and blockchain technology, creating a competitive regional landscape. Thailand’s initiative to issue G-token bonds and develop the Digital Baht could set a precedent for other governments in the region to explore similar innovations, potentially reshaping how public debt and currency are managed globally.
Internationally, Thailand’s move aligns with broader trends toward digitalization in financial markets. From the European Union’s exploration of digital bonds to the growing use of central bank digital currencies (CBDCs) in countries like China, the global financial system is undergoing a profound transformation. Thailand’s proactive stance could enhance its standing in international financial circles, provided it can navigate the associated risks and deliver on implementation.
Looking Forward
As Thailand embarks on this ambitious journey to modernize its capital markets, the coming months will be pivotal. The successful passage of the Electronic Securities Bill through Parliament, coupled with the rollout of G-token bonds and the Digital Baht, will test the government’s ability to balance innovation with stability. For now, the promise of a more efficient, accessible, and competitive financial sector offers hope for both investors and the broader public. Yet, as these reforms unfold, questions remain about how Thailand will address cybersecurity concerns and ensure equitable access to digital financial tools in a diverse and rapidly changing society.
