- Thai Pheu Thai Party proposes a CBDC grant of $280 to citizens with stringent spending restrictions.
- The party’s move seen as both an economy-boosting initiative and a tactic to cement a digital economy foundation.
Diving right into the latest from the financial world, a recent local online article shines a spotlight on Thailand’s Pheu Thai Party and their audacious promise. Should they secure power, they’re pledging to distribute a digital currency valued at $280 (or 10,000 baht) to the nation’s citizens. But, there’s a twist in the tale.
The Strings Attached: A Glimpse at Programmable CBDCs
Programmable CBDCs (central bank digital currencies) are characterized by the marriage of blockchain technology with built-in expiry and geolocation constraints. And the Pheu Thai Party’s CBDC proposal mirrors this trend.
For citizens to benefit from this digital boon, there are stipulations. Recipients, those over the age of 16 equipped with a digital wallet app, must spend it within a span of six months and strictly within a 5km radius of their homes.
Revival of the Digital Wallet: A Strategic Move?
As reported by the Bangkok Post, Deputy Secretary-General Paopoom Rojanasakul recently confirmed the Pheu Thai Party’s plans. They’re setting the stage to reintroduce the 10,000-baht digital wallet initiative as soon as their emerging government assumes office.
The Party’s vision is two-fold. On one side, this is seen as an impetus to the economy, and on the other, it’s a bid to pioneer a robust digital economy in Thailand.
Ensuring inclusivity, even those lacking a digital wallet app aren’t excluded. Their national ID is their ticket to a “personal code”, enabling them to access the 10,000 baht.
The programmable digital currency proposal isn’t a new narrative for the Pheu Thai Party. They ventured into this territory before the April elections, ultimately finishing second. With the initiative back in the limelight, speculations are rampant. Notably, experts from the Council on Foreign Relations anticipate a favorable outcome for the party.
Nevertheless, roadblocks exist. The viability of the Pheu Thai Party realizing their digital ambition hangs in the balance, especially with Thailand’s central bank remaining non-committal about the proposal and still in the preliminary stages of exploring its CBDC.
