Freshly sworn into power, Thailand’s Prime Minister is banking on blockchain technology and crypto wallets to deliver on his election promises. To this end, every citizen of this Buddhist nation will receive $280 in a digital wallet.
Blockchain for political action
Since coming to power on August 23, the Pheu Thai party, directed by Srettha Thavisin, has committed to fulfilling a bold election promise: to pay a significant sum of money directly to Thai citizens. To achieve this, they chose to exploit blockchain technology.
According to a report from the Bangkok Post, Thailand’s leading media outlet, the project is based on a highly secure blockchain that guarantees complete traceability. In line with the party’s commitments, every citizen aged 16 and over will receive 10,000 baht, or approximately $280, in their wallet.
To access these funds, beneficiaries will first need to download a crypto wallet. They will then be able to use the funds within six months, but only on one condition: that they spend them at local shops and businesses within a four-kilometer radius of their home.
Thailand boosts adoption of cryptos and new technologies
Before diving into the political arena, Thavisin was the head of Sansiri, a leader in real estate with a foothold in the digital sector. Armed with this experience, he is now at the center of this financial transformation in Thailand.
The challenge of this initiative goes beyond mere financial distribution. Indeed, it aims to bridge the gap in access to digital finance and boost local economies, thus limiting the accumulation of wealth in large urban areas.
However, questions are emerging about the financing of this project and the exact nature of the cryptocurrency involved. Many economists and members of the opposition are questioning the long-term viability of this approach, citing concerns about a possible tax increase.
At the same time, the Thai government is intensifying its communication around the establishment of a CBDC, although this is not the first attempt in this direction. It is hoped that this move will raise public awareness about digital finance and encourage the government to fully implement its CBDC project.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.