Thailand’s Pheu Thai Party Proposes Digital Wallet, To Start With 10,000-Baht Handout
In an upcoming political move, the Pheu Thai Party is set to reintroduce its innovative 10,000-baht digital wallet program as part of its coalition government responsibilities. This strategic decision comes after securing a central role within the new coalition, propelling the party to bring back its landmark digital wallet policy backed by cutting-edge blockchain technology.
Originally put on hold following their second-place finish in the May 14 election, the Pheu Thai Party is now positioned to enact the digital wallet initiative. This policy, aimed at providing a 10,000-baht digital allowance to all Thai citizens aged 16 and above, will be seamlessly accessible via smartphones. Notably, the digital funds can only be expended within a four-kilometer radius of the recipient’s domicile and will remain valid for a six-month duration.
“Now the situation has changed and Pheu Thai is now the core (of a new coalition),” Deputy Secretary-General Paopoom Rojanasakul said on Friday. “Today, the party would like to officially declare that it will move ahead with the digital wallet policy, using blockchain technology.
Addressing accessibility concerns, Rojanasakul reassured that citizens without smartphone access could effortlessly obtain a personalized code using their national ID card.
The bold move places Thailand among the pioneers of this novel digital payment system. Dismissing criticisms by economists regarding potential inflationary effects, Rojanasakul emphasized the meticulous evaluation of the economic team, confirming the absence of adverse consequences on the nation’s fiscal security. On the contrary, the initiative is anticipated to catalyze substantial economic expansion.
In conjunction with the digital allowance, plans are in motion to establish a digital assets capital market and securities exchange commission, a significant stride towards modern financial infrastructure.
“That is to say, we will go ahead with the digital wallet scheme and make it fully operational for the benefit of the country,” he added.
Earlier this June, the Bank of Thailand said it would launch a pilot project for a retail central bank digital currency (CBDC) within a regulatory sandbox. The project aims to involve around 10,000 users and will continue until August 2023. Collaborating on the initiative are the Thai Central Bank, Bank of Ayudhya (Krungsri), Siam Commercial Bank, and payments service provider 2C2P from Singapore. These entities have introduced specialized applications to a limited user group, featuring integrated wallets and QR code scanners. Krungsri intends to engage about 2,000 staff members and nearly 100 nearby merchants in the pilot, with plans to expand to its Ploenchit branch.
The pledge to roll out the 10,000-baht digital handout remains integral to the party’s election campaign promises. The party’s prospective prime ministerial nominee, Srettha Thavisin, envisions this initiative as a catalyst for an “economic tsunami,” driving consumption and enhancing numerous sectors of the economy.
The Thai Chamber of Commerce projects a potential GDP growth of 2.5% or more through this fund infusion, advocating for its commencement among low-income earners and its subsequent expansion to registered entrepreneurs and small business operators.
Information for this briefing was found via Bangkok Post, The Nation Thailand, Forbes India, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
