The Thai government has officially announced its intention to launch a digital money campaign in February 2024 as part of its broader strategy to invigorate the economy and foster digital infrastructure development. Under this initiative, citizens aged 16 and above will be eligible to receive 10,000 baht in digital currency, which can be utilized for the purchase of goods within a 4-kilometer radius of their residences.
To execute this ambitious project, the government is currently engaged in discussions with various stakeholders to ensure that all necessary steps and due diligence are diligently undertaken.
The primary objectives of this endeavor encompass the widespread adoption of digital wallets and the implementation of other stimulating measures, with the overarching aim of jumpstarting economic activity and mitigating disparities in digital currency accessibility.
Financing for this initiative will be sourced from the state budget, resulting in an anticipated boost in revenue collection and a corresponding reduction in select welfare programs. The estimated cost of this endeavor is approximately 560 billion baht.
The government firmly believes that this proactive move will not only serve as a catalyst for economic growth but also expedite the development of essential digital infrastructure. Ongoing negotiations with various sectors are underway to ensure the seamless execution of this project.
Additionally, it is imperative to note that certain restrictions will be in place regarding the use of these digital funds. Specifically, expenditures on items such as cigarettes and alcohol will be strictly prohibited.
Meanwhile, the Pheu Thai Party has outlined its plans to introduce a digital wallet scheme utilizing utility tokens with the objective of bolstering the domestic economy. However, it is worth mentioning that these tokens may require regulatory approval from the Bank of Thailand, as digital tokens are not currently recognized as a valid form of payment.
The party is also considering the possibility of relaxing the radius restriction for citizens residing in remote areas to facilitate their participation in the campaign.
Key rules governing the utilization of these digital funds include their expenditure on consumer products and essential necessities. Eligible sellers will have the option to exchange the digital currency for cash. Notably, spending on online shopping, alcohol, drugs, gambling, and debt repayment will be explicitly prohibited.
This comprehensive initiative represents a significant step towards promoting economic resilience and advancing Thailand’s digital infrastructure, aligning with the government’s vision for a digitally empowered future.
