Thailand raises $ 6.4M with blockchain-based bond sales
The Ministry of Finance's public debt management office (PDMO) has announced it plans to sell 200 million baht ($ 6.42 million) of savings bonds using blockchain-based electronic wallets.
In a statement released on its website on Tuesday, the ministry said the bonds had an extremely low face value of 1 baht ($ 0.032) each and would be sold through the state-owned Krung Thai Bank Bank blockchain wallet.
The statement said that distributing bonds via blockchain e-wallets is a step to increase the efficiency of the government system and invest in the true digital economy. According to a report by local media Bangkok Post, the use of blockchain technology allows debt bureaus to reduce the face value of bonds.
With the blockchain system, PDMO can break the value of savings bonds to 1 baht compared to the regular 1,000 baht, PDMO General Director Patricia Mongkhonvanit told the Bangkok Post.
The Ministry of Finance's statement also noted that the 200 million baht bond issue is a pilot project to continue financing by making it easier for people to register government issued bonds. The bond bears interest at 1.70% per annum and maturity is three years.