Thailand’s finance minister, Pichai Chunhavajira, has confirmed the government’s plan to distribute digital money as a social benefit. On August 1, up to 45 million Thai citizens will receive 10,000 baht (about $280) in digital currency. This amount is roughly two-thirds of the country’s average monthly income.
The Digital Wallet Plan: A Campaign Promise
The Digital Wallet plan was a key campaign promise from the Pheu Thai party, which won last year’s general election. The plan will cost $13.8 billion and targets Thai residents aged 16 or older with incomes below $23,000 and savings under $13,700. The funds for this initiative will come from the national budget, as the parliament approved additional funding earlier in July. Supporters believe this plan will boost the domestic economy, which has been growing at less than 2% annually for the past decade.
A spokesperson for the Digital Government Development Agency announced that the digital wallet app can be downloaded from the Google Play Store and Apple App Store. Users must register through the Thang Raj (Government Path) app. For those without smartphones, there will be an option to register in person, though with some limitations on use.
Controversies and Restrictions Around Thailand’s Digital Wallet Plan
The Digital Wallet plan has faced controversy since the Pheu Thai party’s victory in August 2023. The program was officially approved in January and includes various restrictions. Know Your Customer (KYC) verification will exclude prisoners and individuals or businesses with records of economic abuse. There are also limits on what can be purchased with the digital money.
The specific technology behind the digital wallets has not been disclosed. While the Bank of Thailand recently completed a pilot for a retail central bank digital currency (CBDC), it has no plans to issue a CBDC at this time. Thailand’s Prime Minister Srettha Thavisin, who took office after the last election, holds a 15% stake in the Thai asset tokenization provider X Spring, suggesting potential future developments in digital finance for the country.
