Thai Government to Make One of the First National Crypto Airdrops in History

Revitalizing the economy by injecting public funds to stimulate consumption is not a new concept, and the newly elected Thai government hasn’t invented anything groundbreaking. We’ve seen similar measures in the United States, France, and even China.

However, the unique aspect of the incoming Thai program is its use of digital money, which will be directly sent to cryptocurrency wallets. This represents a nationwide airdrop expected to benefit approximately 45 million recipients, with an equivalent of $280 per person.

Yet, the project is causing division among local politicians, who accuse the ruling Pheu Thai Party of adopting populist measures, with this distribution being a prime example. Let’s head to the former capital of the Kingdom of Siam for an update.

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45 Million Thai Citizens to Receive $280 in Digital Currency

The Thai Finance Minister, Pichai Chunhavajira, has confirmed that a social benefit will be distributed in the form of digital currency, with registrations starting on August 1. Up to 45 million people are potentially eligible for this plan, each receiving 10,000 baht, or approximately $280.

For context, this amount represents about two-thirds of the average monthly salary in the country. To access this benefit, Thai citizens will need to download a special digital wallet available on all platforms. For those without smartphones, a backup plan is under consideration.

This consumption-driven stimulus was a promise of the Pheu Thai Party, which came to power in the spring of 2023. The initiative will also include Thai citizens aged 16 and older with annual incomes below $23,000 and savings under $13,700.

The giant Thai airdrop is expected to cost a total of $13.8 billion, and it is safe to say that it is not universally popular. Indeed, the opposition strongly criticizes the measure as populist, arguing that distributing money to people in hopes of soothing discontent and spurring growth is a flawed strategy.

A Controversial Program Dividing Thai Politics

The primary criticism is economic: experience from other countries shows that it is challenging to direct spending and ensure that the money doesn’t end up in the pockets of foreign retail giants.

To address this, Thai authorities have imposed several restrictions on certain items (such as firearms) and geographic limits. The money must be spent within a four-kilometer radius of one’s home, according to Cointelegraph, and cannot be withdrawn as cash or used to pay off debts. Additionally, the funds will have a usage deadline of six months. Yes, money now has an expiration date!

Privacy Issues and Digital Currency Concerns

Furthermore, there are criticisms regarding the requirement to create a KYC (Know Your Customer) account to access the funds, which will allow Thai authorities to access the personal information of all recipients.

This raises concerns about dystopian implications with these programmable central bank digital currencies, causing nightmares for early Libertarians. When a government can decide who receives the money and how, when, and where it can be spent, individual freedom takes a significant hit.

However, let’s not be too pessimistic. For now, this is just a small boost for Thailand’s less fortunate, and the government has repeatedly stated that a Central Bank Digital Currency (CBDC) is not on the agenda. And, as everyone knows, we can always trust politicians, right?

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(Featured image by Rodion Kutsaiev via Unsplash)

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First published in Journal du Coin. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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