Subscribe for notification
Crypto

Thailand Pours $12.4 Billion into Digital Cash Plan

Thailand is launching a $13.8 billion Digital Wallet scheme to boost its economy, focusing on low-income workers and sparking debates on sustainability.

Debates over the economic sustainability of the “Digital Wallet” system focus on low-income workers.

To boost its flagging economy, Thailand is about to implement a $13.8 billion digital cash distribution scheme that was first met with opposition. According to AP News, Prime Minister Srettha Thavisin declared that qualified companies and people could sign up for the “Digital Wallet” scheme beginning on August 1.

The idea, first unveiled in April, was to provide 50 million Thai citizens 10,000 baht (about $275), which was estimated to be worth roughly $13.8 billion. At a news conference on July 15, however, Deputy Minister of Finance Julapan Amornvivat revealed that 10% of consumers had yet to use prior freebies, dropping costs to $12.4 billion. As reported by Bloomberg, this digital currency is meant to be used over six months at local businesses.

The recipients of the handouts are adults with monthly incomes of at most 70,000 baht ($1,890) and bank account balances of no more than 500,000 baht ($13,500). According to AP News, the program will be partly funded by the state-owned Bank for Agriculture and Agricultural Cooperatives and partly by a combination of the 2024 and 2025 budgets.

The beneficiaries must use the money in their local areas; internet transactions, fuel, services, alcohol, and tobacco purchases are not allowed. According to World Bank projections, Thailand’s GDP growth is expected to increase from 1.9 percent in 2023 to 2.4 percent in 2024.

The program has drawn criticism from analysts who doubt its ability to promote sustainable economic growth despite the government’s optimism. Questions have been expressed over how the initiative will affect the national debt and the budget deficit. As reported by Bloomberg, there is doubt about the plan’s long-term viability.

Thailand, experiencing slow growth, has taken a significant step in its economic policy by introducing the Digital Wallet program.

Ruth Okarter

Ruth is a seasoned news reporter and editor who brings her sharp eye and passion for storytelling to Protechbro.com. With a background in English and literary studies, Ruth crafts compelling narratives that unpack the complexities of the ever-evolving tech landscape.

Disqus Comments Loading...

Recent Posts

Crypto Companies Could See More US Listings if Trump Wins

According to a research report from HTX Ventures, the trend of crypto companies departing the United States could be halted,…

4 hours ago

Metaplanet Joins Global Equity Index

Metaplanet Inc., a Japanese investment firm, has been admitted to the CoinShares Blockchain Global Equity Index (BLOCK Index). Prominent publicly…

4 hours ago

Major South Korean Banks Join CBDC Pilot

The central bank's CBDC pilot, which is rapidly expanding, has attracted the participation of numerous prominent South Korean banks and…

4 hours ago

BTC Plummets, Mt.Gox Sends $2.2B in Bitcoin to 2 Wallet

After first going to a Mt.Gox cold wallet, most of that stash—nearly 30,400 bitcoin BTC—was sent to "1FG2C…Rveoy," and 2,000…

7 hours ago

Firms Unveil Global Dollar Stablecoin Network

Major banking firms launched the Global Dollar Network, a regulated platform designed to accelerate stablecoin adoption worldwide. Crypto and traditional…

8 hours ago

Sky Co-Founder Proposes No New Token Emissions

Rune Christensen, co-founder of Sky (formerly MakerDAO), proposes a strictly deflationary model to stop token emissions, in line with MakerDAO’s…

21 hours ago