Advertisement PDAX Banner

An Election Promise Fulfilled: Thailand to Distribute Cash Aid Via Crypto Wallet

Thailand to Distribute Cash Aid Via Crypto Wallet (1)
  • Thailand’s majority political party, Pheu Thai, is set to use blockchain technology to distribute the country’s digital economic stimulus.
  • ‌The cash handouts are said to be 10,000 baht, or around $280, and beneficiaries will receive a digital wallet that will be operational for six months. 
  • However, the initiative has been questioned by some economists, citing its feasibility, legality, and source of funding.

After promising during the 2023 election campaign, Thailand’s majority political party, Pheu Thai, is set to use blockchain technology to distribute the country’s digital economic stimulus to citizens over 16 years old.

Thailand’s Digital Economic Stimulus

According to a local publication, Though the details of the initiative are limited, the cash handouts are said to be 10,000 baht, or around $280, and beneficiaries will receive a digital wallet that will be operational for six months. 

Beneficiaries can then use the cash handout to make transactions at local establishments within a four-kilometer radius of their registered residences.

According to Deputy Finance Minister Julapun Amornvivat, the plan of having blockchain-backed cash disbursements is to promote digital finance and ensure transparency.

“The main idea of the economic stimulus policy is that GDP can grow by at least 5%, which we expect in 2024.”  

Advertisement PDAX Banner

Julapun Amornvivat, Deputy Finance Minister, Thailand

“The multiplier effect of the cash handouts will see so much money circulating that it will be equivalent to at least 2 trillion baht. About 30 billion baht of value-added tax (VAT) is expected to be collected.”

Julapun Amornvivat, Deputy Finance Minister, Thailand

Moreover, though the initiative does not require registration, qualified beneficiaries should download the newly launched national wallet app. 

“The project will be driven by high-security blockchain technology, so it is completely traceable. Eligibility conditions can be set in terms of age and spending parameters,” the Finance Minister expressed, but the blockchain that will be used was not mentioned. 

National Wallet App: Are Thais Bullish or Bearish? 

Since Pheu Thai announced the launch of blockchain-backed cash disbursements, the initiative has faced criticism from local economists over its feasibility, legality, and source of funding.

For Association for the Protection of the Constitution Executive Srisuwan Janya, the promise made is a flagrant vote-buying exercise, adding that the initiative is little more than a contract to pay money to win votes.

Meanwhile, an activist expressed that it was not feasible, as it would not be approved by the parliament and would be challenged in the Constitutional Court. This is because the government is said to be unable to monitor and regulate how users spend their airdropped funds.

The same criticism is being faced by the country’s CBDC Project, which was started last June. 

As the Bank of Thailand launched a CBDC pilot with three payment service providers, critics have expressed concerns about state-controlled programmable money eroding privacy and financial freedom.

This article is published on BitPinas: An Election Promise Fulfilled: Thailand to Distribute Cash Aid Via Crypto Wallet

Disclaimer:

  • Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
  • BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are solely your own responsibility. This website is not responsible for any losses you may incur, nor will it claim attribution for your gains.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.