7-9-2023 (BANGKOK) The implementation of Pheu Thai’s ambitious plan to distribute 10,000 baht of digital currency to citizens is expected to inject a staggering 2 trillion baht into the Thai economy. Deputy Finance Minister Julapun Amornvivat has revealed that this initiative will contribute to a projected GDP growth of at least 5% in 2024.
Mr. Julapun emphasized that the widespread adoption of digital wallets will provide a much-needed boost to the economy. As part of the comprehensive stimulus strategy, additional measures, such as leveraging soft power to generate income and raising the prices of agricultural products, will also contribute to economic growth.
“The primary objective of this economic stimulus policy is to achieve a minimum GDP growth rate of 5% by 2024,” stated Mr. Julapun.
The cash handouts are anticipated to have a multiplier effect, resulting in the circulation of a significant amount of money, equivalent to at least 2 trillion baht. Moreover, it is estimated that approximately 30 billion baht in value-added tax (VAT) will be collected from the purchase of goods and services.
Notably, this project does not require any registration process. To receive their share of the digital currency, individuals simply need to download the new national wallet app.
The project will be supported by a highly secure blockchain technology, ensuring complete traceability. Eligibility criteria, such as age and spending parameters, can be established to regulate access to the digital currency, said Mr. Julapun.
The policy is anticipated to be launched in the first quarter of 2024.
To stimulate local economies and prevent an excessive concentration of income in urban areas, the digital wallet can be used for a six-month period at all local shops and businesses within a four-kilometer radius of a person’s registered address.
However, certain restrictions apply. The funds cannot be used for purchasing cigarettes and alcohol, repaying debts, or being converted into fiat currency, except for registered merchants operating under the VAT system.
The project will be financed through the state budget, resulting in an increase in revenue for fiscal year 2024, while certain welfare programs, such as the state welfare card, may experience a reduction. The estimated cost of the project is 560 billion baht.
To access the 10,000 baht of digital currency, individuals will need to download the accompanying app and link it to their ID card. For those without smartphones, authentication can be done using their 13-digit ID card number.
