A prime ministerial candidate of the Pheu Thai Party announced the 10,000-baht (~$300) giveaway policy
A leading opposition party in Thailand, Pheu Thai, promised a 10,000-baht (~$300) handout in digital currency to everyone of age 16 and over if it wins the next month’s elections. Srettha Thavisin, the party’s PM candidate, hopes this way to “resuscitate” the local economy and provide some respite to those struggling with paying a debt.
According to Paetongtarn Shinawatra, Pheu Thai’s chief adviser on public participation and innovation, the project will serve as a blockchain technology-based effort to help distribute products made in Thailand and bring digital currencies into the kingdom.
The party plans to allocate around 500 billion baht ($15 billion) on the project, distributing funds to nearly 55 million people. The money would be transferred to digital wallets and could be spent within six months on goods and services within a 4km community radius.
Thailand’s economy is growing slowly and households are battling “neck-deep debt,” prompting major parties to promise payouts and reduce debt to draw voters, as the media notes.
According to Thailand Development Research Institute, Thai politicians have cumulatively made $92 billion worth of campaign promises in cash handouts, debt freeze, etc of election pledges. This could lead to an increase in government debt and inflation.
Last summer, the Bank of Thailand announced plans to begin the trial of its Central Bank Digital Currency (CBDC) in a retail setting. At the time of the pilot the regulator had been already testing the national crypto-currency jointly with large businesses.