Thailand’s Pheu Thai Pledges $15 Billion For Digital Wallet Cash Handouts

Key Points:

• Pheu Thai promises to distribute 10,000 baht each to 55 million citizens if it wins the upcoming election.
• The money will be disbursed using digital wallets built on blockchain technology.
• Pheu Thai officials maintain that these policies are necessary to revive the Thai economy, which has been economically bruised over the past eight years.

The main opposition party in Thailand, Pheu Thai, has pledged to distribute about 500 billion baht ($15 billion) in cash which will be disbursed using digital wallets built on blockchain technology if it wins the upcoming election next month.

The move is aimed at “resuscitating” the struggling economy and helping those battling “neck-deep debt.” Pheu Thai plans to distribute 10,000 baht each to around 55 million citizens who are 16 years and above. As per Bloomberg, the money will be disbursed using digital wallets built on blockchain technology and can be spent on goods and services in the neighborhood.

In addition to cash handouts, Pheu Thai is also promising a steep increase in minimum wages, measures to triple farm income, and a minimum monthly household income guarantee. The party is deploying a populist playbook of policies that have helped parties linked to former Prime Minister Thaksin Shinawatra emerge as the largest party in parliament in the past two decades.

Pheu Thai is commanding a wide lead in opinion polls ahead of the May 14 vote, but all the major parties are pledging freebies such as cash and debt suspension to woo voters. According to Thailand Development Research Institute, the pledges from the top nine parties already total around 3.14 trillion baht.

The fund for the digital wallet will come from a mix of additional government revenue, tax collection, freeing up redundant budget allocation, and the prime minister’s discretionary fund. The money can be spent by families on farming, daily expenses, or as investment in other businesses to generate income within a six-month period.

While Pheu Thai’s pledge may alleviate economic hardship faced by voters, some experts are concerned that such measures may widen state debt and further fuel inflation. However, Pheu Thai officials maintain that these policies are necessary to revive the Thai economy, which has been economically bruised over the past eight years.

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