prismnews

Thai Political Party Offers $300 in Crypto to Citizens Upon Election Victory

In the Brief:

  • Thailand's Pheu Thai Party proposes to give $300 in digital currency to citizens over 16 if it wins the general election.
  • The plan aims to enhance the economy using blockchain technology.
  • It's likened to Andrew Yang's universal basic income initiative, and estimated to cost $14-$18bn.

3 - 5 minute read

Thailand’s Pheu Thai Party has pledged to hand out nearly $300 in digital currency to each of its citizens aged 16 years and older should it win the upcoming general election. With a general election scheduled for May 14, the Pheu Thai Party, which is in opposition to the current prime minister, has flagged its intention to give all Thai residents a stipend of 10,000 baht, around $292 at the time of writing. The party sees this as a stimulus project using blockchain technology that would support the country’s struggling economy.

The proposal of the stipend was made during an election campaign event on April 5, led by one of the party’s candidates for prime minister, Srettha Thavisin. In a tweet from the Bangkok Post, the party announced that it would provide every adult Thai citizen with 10,000 baht via digital wallets on Jan 1, 2024, should they form the next government.

The initiative has drawn comparisons to U.S. presidential candidate Andrew Yang’s proposed universal basic income initiative, which saw him promising that every eligible citizen would receive $1,000 every month if he won the 2020 elections.

Crypto in Thailand

The regime in Thailand has generally facilitated digital currency exchanges and trading, yet the country’s Securities and Exchange Commission has since been considering a ban on staking and lending services, while regulators introduced stricter cryptocurrency custody provider rules. In addition, the central bank cautioned investors against stablecoins pegged to the Thai baht in 2021.

It is still uncertain what digital currency the Pheu Thai Party plans to use for the initiative or how the asset would be distributed. Nonetheless, crypto enthusiasts welcome the promise.

Standard Chartered said in its report that the scheme would increase the monetary velocity of the Thai economy, meaning a larger proportion of each Baht would be used more frequently to buy goods and services, generating GDP growth. Overall, a larger digital currency footprint would also make Thailand a more attractive location for fintech innovation.

Cost of the Initiative

The cost of the initiative is projected to be around $14 billion to $18 billion, given the fact that Thailand’s population currently stands at more than 70 million, of which roughly 50 to 60 million are aged over 16. The possibility of such an initiative also highlights Thailand’s goal of becoming a digital and innovation hub.

Conclusion

The proposal by the Pheu Thai Party to distribute digital currency in the form of a stipend to its citizens has captured the attention of many. Although it is still unclear which digital currency will be chosen for distribution or how transactions will be executed, the initiative implies the growing acceptance of digital currency by governments, particularly in view of the challenges of traditional fiat currency.

On the other hand, this move by the Pheu Thai Party has the potential to further stimulate and sustain the economy of the country, especially with the monetary velocity of Thai Baht likely to increase. Investors who are hoping to gain from this initiative should keep an eye on the development of the project and the potential digital currency to be introduced.

Overall, this initiative demonstrates the changing tides in the financial and political sectors towards digital currencies and signals a possible paradigm shift for the way governments think about and use digital currencies.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

Leave a Reply

Your email address will not be published. Required fields are marked *