Thailand to Launch Digital Wallet Program for Social Benefits

Thailand’s Finance Minister, Pichai Chunhavajira, announced that a new digital wallet initiative will start on August 1, distributing 10,000 baht (around $280) to up to 45 million Thais.

This amount is roughly two-thirds of the average monthly income in the country.

This initiative, part of the Pheu Thai party’s campaign promise, will cost $13.8 billion. It targets Thais aged 16 and older who earn less than $23,000 annually and have savings under $13,700. The funds will come from the national budget following parliamentary approval.

The government aims to use this digital money as an economic stimulus to boost domestic growth, which has been sluggish for years. The digital wallet app will be available on Google Play and the Apple App Store, with options for those without smartphones to register in person.

The plan, controversial at first but approved in January, includes restrictions such as Know Your Customer (KYC) requirements, which will exclude certain individuals and businesses. Limits are also placed on what the digital money can be used for.

While the Bank of Thailand has piloted a central bank digital currency (CBDC), it does not plan to issue one currently. Prime Minister Srettha Thavisin, who has a stake in X Spring, a Thai asset tokenization provider, oversees the initiative.