Thailand’s New Government Utilizes Blockchain and Crypto Wallets for Cash Handouts
Thailand’s newly appointed government, Pheu Thai, is embracing digital ledger technology to distribute economic stimulus funds. The government plans to leverage blockchain systems to ensure secure and traceable transactions for the disbursement of 10,000 Thai baht (approximately $280) cash handouts to citizens. The specifics of the blockchain solution are yet to be disclosed, leaving uncertainty regarding the use of an existing system or the development of a custom one. Beneficiaries of this initiative will receive a digital wallet for six months, enabling purchases within a four-kilometer radius of their registered residences. To access this benefit, recipients must download the national wallet app on their smartphones.
This move aims to bridge the digital money accessibility gap and stimulate local economies while curbing wealth accumulation in metropolitan areas. Deputy Finance Minister Julapun Amornvivat projects that this policy will inject approximately 2 trillion baht (around 56 billion US dollars) into the economy, potentially driving GDP growth to a minimum of 5% by 2024.
Criticism and Tax Incentives
The scheme has faced criticism, particularly regarding the source of funds. Furthermore, the current coalition government, appointed by the Senate with military backing, holds significant influence despite not being the victor in recent elections. In addition to the cash handout initiative, the Thai cabinet has introduced tax incentives for companies issuing investment tokens. The government spokesperson expects this move to generate approximately $3.7 billion over the next two years.
Hot Take
Thailand’s adoption of blockchain and cryptocurrency technology for cash handouts showcases its commitment to embracing innovative solutions for financial inclusion and economic growth. While the source of funds and political circumstances raise questions, the potential injection of 2 trillion baht into the economy and the bridging of digital money accessibility gaps demonstrate the government’s proactive approach towards tackling socioeconomic challenges.
By
By
By
By
