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Thailand distributing digital money to 45M citizens to boost economy

News Feed - 2024-07-25 01:07:48

Derek Andersen7 hours agoThailand distributing digital money to 45M citizens to boost economyThe controversial plan began as a campaign promise and will help lower-income Thais buy more.1292 Total views26 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThailand’s finance minister, Pichai Chunhavajira, has confirmed that a plan to pay a social benefit in digital money is going ahead. Up to 45 million Thais will be eligible to receive 10,000 baht (about $280) in digital money on Aug. 1. That sum is about two-thirds of the average monthly income in the country.


The Digital Wallet plan was a campaign promise by the Pheu Thai party, which won last year’s general election. The plan will cost $13.8 billion and distribute the cash in digital form to Thais age 16 or older with incomes under $23,000 and savings under $13,700, according to the AP.Digital money as an economic stimulant


The money for the plan will come from the national budget, after the parliament approved supplemental funds for the purpose earlier in July. Backers of the plan promise that it will stimulate the domestic economy, which has been growing at less than 2% annually for the last decade.


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A spokesperson for the Digital Government Development Agency said the digital wallet app can be downloaded from the Google Play Store and Apple App Store and registered on the Thang Raj (Government Path) app. People without smartphones will be able to register for the benefit in person and use it with some limitations.Digital money with controls


The Digital Wallet plan proved to be controversial after the victory of the Pheu Thai party in August 2023, but it was approved in January. There are numerous restrictions on the use of the digital money, including Know Your Customer verification that will exclude prisoners and people and businesses with records of economic abuse. There are also restrictions on the items that can be purchased with the digital money.Source: Srettha Thavisin


The technology supporting the digital wallets has not been specified. The Bank of Thailand completed a pilot retail central bank digital currency (CBDC) project this year, but does not intend to issue a CBDC at this time. Prime Minister Srettha Thavisin, who came to power in the last election, owns a 15% stake in the Thai asset tokenization provider X Spring.


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