The Public Debt Management Office (PDMO) within Thailand’s Ministry of Finance has announced it plans to sell 200 million baht ($6.42 million) in savings bonds using a blockchain-based e-wallet.
In a statement released on its website Tuesday, the ministry said the bonds carry an extremely low face value of 1 baht ($0.032) each and would be sold through the state-owned Krung Thai Bank’s blockchain wallet.
The statement said distributing the bonds through the blockchain e-wallet was a step towards increasing the efficiency of the government system and an investment in the true digital economy. According to a report by the local media outlet Bangkok Post, using blockchain technology allowed the debt office to reduce the face value of the bonds.
“With the blockchain system, PDMO can break up the amount of the savings bond face value to as low as 1 baht from the regular 1,000 baht,” said PDMO Director General Patricia Mongkhonvanit to the Bangkok Post.
The Ministry of finance’s statement also noted that the 200 million baht bond issue was a pilot project to further financial inclusion by making it easier for people to subscribe to government issued bonds. The bonds carry an interest rate of 1.70% per annum and a maturity period of three years.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.