Thailand is set to implement a groundbreaking social benefit program, confirmed by Finance Minister Pichai Chunhavajira. Starting August 1, up to 45 million Thai citizens will receive 10,000 baht (approximately $280) in digital money. This amount is equivalent to about two-thirds of the average monthly income in the country.
The beneficiaries of this plan are Thais aged 16 or older with an annual income of less than $23,000 and savings under $13,700. This initiative was a key campaign promise of the Pheu Thai party, which emerged victorious in the general election last year. Prime Minister Srettha Thavisin, who assumed office following the election, has a significant stake in X Spring, a company specializing in Thai asset tokenization.
The digital money distribution is scheduled for August 1. The plan, which will cost $13.8 billion, received parliamentary approval for the necessary supplemental funds earlier in July.
The implementation will be managed through a digital wallet app available on the Google Play Store and Apple App Store. Users can register for the benefit on the Thang Raj (Government Path) app. Those without smartphones can register in person, albeit with certain limitations. The plan includes robust Know Your Customer (KYC) verification processes to exclude prisoners and individuals or businesses with records of economic abuse. There are also restrictions on the items that can be purchased using the digital money.
The Digital Wallet plan, despite being a major election promise, sparked controversy following the Pheu Thai party’s victory in August 2023. It was finally approved in January. The Bank of Thailand has completed a pilot retail central bank digital currency (CBDC) project but has stated that it does not plan to issue a CBDC at this time. The specifics of the technology supporting the digital wallets have not been disclosed, raising questions and interest among the public and financial experts.
Proponents of the plan argue that it will provide a significant boost to Thailand’s domestic economy, which has been struggling with growth rates of less than 2% annually over the past decade. However, the success of the initiative will largely depend on its execution and the effectiveness of the technological infrastructure supporting it. The plan aims to inject liquidity into the economy and provide financial relief to millions of Thais, marking a significant step in the country’s digital and economic development.
