Thailand’s New Government Uses Blockchain and Cryptocurrency Wallets to Distribute Cash Stimulus
Thailand’s newly appointed government, Pheu Thai, is embracing digital technology to facilitate an economic stimulus initiative. As part of this initiative, they will distribute financial aid of 10,000 THB (about $280 USD) to citizens through blockchain technology. This system ensures high security and traceability of transactions, although it is unclear whether the government will use an existing blockchain solution or develop a new one for this purpose.
Beneficiaries of this scheme will receive a digital wallet that will be valid for six months. They can use this wallet to make purchases at local establishments within a four-kilometer radius of their registered residences. The aim of this move is to bridge the accessibility gap in digital money among the population. To access this benefit, beneficiaries must download the newly launched national wallet app on their smartphones.
This initiative not only fulfills an electoral promise but also serves as a strategy to revitalize local economies and reduce wealth accumulation in urban areas. Deputy Finance Minister Gulapon Amornvivat estimates that nearly 2 trillion baht (about 56 billion US dollars) will be injected into the economy through this policy, potentially boosting GDP growth to a minimum of 5% by 2024.
Despite its promising prospects, this scheme has faced criticisms, particularly concerning the source of financial resources. Adding to the controversy, the current coalition government, which assumed power in August, was not elected but appointed by the Senate, which has military support and significant influence in the country.
This development comes shortly after the Thai Cabinet’s decision to provide tax incentives for companies issuing investment tokens, a move expected to generate around $3.7 billion over the next two years.
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