New Digital Wallet Initiative in Thailand
The Minister of Finance in Thailand, Pichai Chunhavajira, has announced a new initiative for a digital wallet that will start on August 1st. As part of this initiative, 10,000 baht (around $280) will be distributed to up to 45 million Thais.
This amount is approximately two-thirds of the average monthly income in the country. The initiative, which is part of the election promise of the Pheu Thai party, will cost $13.8 billion. It is aimed at Thais over 16 years old who earn less than $23,000 annually and have savings below $13,700. The funds will come from the national budget.
Government to Introduce Digital Currency for Economic Stimulus
The government has recently received approval from parliament to launch a digital currency as part of an economic stimulus package aimed at boosting internal growth. The digital wallet app will be available for download on Google Play and the Apple App Store, with options for those without smartphones to register in person.
Plan Includes Restrictions and KYC Requirements
The initial plan, which faced some opposition but was approved in January, includes restrictions such as KYC requirements that will exclude certain individuals and companies from participating. There are also limitations on how the digital currency can be used, in an effort to prevent misuse.
Bank of Thailand’s Central Bank Digital Currency (CBDC) Pilot Program
Even though the Bank of Thailand has piloted a Central Bank Digital Currency (CBDC), it is not currently planning to issue one. Prime Minister Sreta Tavisin, who has a stake in X Spring, a Thai provider of tokenized assets, oversees the initiative.
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