Thailand’s New Government Utilizes Blockchain and Cryptocurrency Wallets for Cash Distributions
Thailand’s new government is leveraging blockchain and cryptocurrency wallets to distribute $280 cash distributions to its citizens.
Economic Stimulus Initiative
According to a report on September 7, the newly appointed Pheu Thai government in Thailand is preparing to take advantage of digital arbitrage technology to facilitate an economic stimulus initiative.
Blockchain Technology for Financial Aid
Although details have not been revealed yet, it has been confirmed that the financial aid, amounting to 10,000 THB (about $280 USD), will be coordinated through blockchain technology. This system ensures high security and full traceability of transactions.
Existing or Bespoke Blockchain Solution
At this point, it remains unclear whether the government will use an existing blockchain solution or develop a bespoke one for this initiative.
Beneficiaries and Digital Wallet
The beneficiaries of this scheme will receive a digital wallet, which will be valid for six months. They can use the wallet to make purchases in local establishments within a radius of four kilometers from their registered residences.
Enhancing Digital Money Accessibility
This move is expected to bridge the gap in digital money accessibility among the population. To benefit from this initiative, the beneficiaries must download the newly launched national wallet app on their smartphones.
Economic Revitalization and Wealth Distribution
This initiative not only fulfills an electoral pledge but also serves as a strategy to revitalize local economies and reduce the accumulation of wealth in urban areas, as shown in the report.
Deputy Finance Minister Gulapon Amornvivat estimates that nearly 2 trillion baht (about 56 billion US dollars) will be injected into the economy, potentially boosting GDP growth to a minimum of 5% by 2024.
Controversies and Criticisms
Despite promising prospects, this scheme has attracted criticisms, especially regarding the origin of financial resources. Adding to the controversy, the current coalition government assumed power in August without winning the last election. They were appointed by the Senate, which enjoys military support and retains significant influence in the country.
Tax Incentives for Investment Tokens
This development closely follows the Thai Cabinet’s decision to provide tax incentives for companies issuing investment tokens. This move is expected to generate about $3.7 billion over the next two years, as announced by vice government spokesperson Rashadeh Dehnadirk.