Thailand’s New Prime Minister to Use Blockchain and Crypto Wallets for Cash Handout
In a commitment to promote digital finance, Thailand’s newly appointed prime minister will be using blockchain technology and crypto wallets for a cash handout to citizens. This move aligns with the government’s economic stimulus pledge and aims to reduce disparities in access to digital money.
The handout, worth 10,000 Thai baht (approximately $280), will be recorded on the blockchain using high-security technology for complete traceability. Recipients will receive a digital wallet that can be used for six months at local shops and businesses within a four-kilometer radius of their registered address.
This initiative not only aims to stimulate local economies but also prevent income concentration in urban areas. The digital currency handout policy is expected to add at least 2 trillion baht ($56 billion) to the economy and contribute to a 5% GDP growth in 2024.
However, critics have raised concerns about the source of the funds and the potential cost to taxpayers. Additionally, the government’s appointment by the military-backed senate has sparked controversy.
Thailand’s Potential for Central Bank Digital Currency
Thailand’s use of blockchain technology and digital wallets for the cash handout may serve as a warm-up for the deployment of a central bank digital currency (CBDC). The Bank of Thailand has already partnered with payment service providers for a CBDC pilot, and the country is also working on a national digital ID system.
While these developments offer convenience and efficiency, critics argue that state-controlled programmable money could compromise privacy and financial freedom. The Thai government’s control over how users spend their airdrop within specified parameters remains unclear.
Hot Take
The use of blockchain technology and crypto wallets for a cash handout showcases Thailand’s commitment to digital finance. However, concerns about the source of funds and potential taxpayer costs, as well as the government’s appointment process, raise valid questions. The deployment of a central bank digital currency and a national digital ID system further emphasize Thailand’s push towards a digital economy. While these advancements offer convenience, critics worry about the erosion of privacy and financial freedom. As Thailand continues on its digital finance journey, striking a balance between innovation and safeguarding individual rights will be crucial.
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