An election pledge during last year’s Thai elections included a payment of 10,000 baht ($277) to every resident adult aged 16 or over. Today the Ministry of Finance shared more details, opening consumer registrations for the smartphone digital wallet from 1 August to 15 September.
Registration for users without smartphones begins 16 September with the money giveaway starting during the fourth quarter.
When the government first shared the plans, it was for a blockchain-based utility token. It’s unclear whether that’s the technology adopted in the digital wallet aspect of the Tang Government app. Blockchain was last mentioned in a November 2023 announcement. It was absent from communications in April and today. The wallet was added to an existing government app first released in 2022.
The program’s primary objective is to provide a fiscal stimulus. The money is not available to people with higher incomes or substantial savings. Nonetheless, the government expects 45 to 50 million to claim the digital cash. Citizens can only spend the digital cash in their local areas and cannot use it online or convert it to physical cash. Initially it can only be used at small retail outlets, and the money can’t be used for certain items such as lottery tickets. A later stage of the program will target business to business trade.
Unsurprisingly, all users have to go through know your client identity validation. Based on some of the reactions on Youtube, the process is unfamiliar to some. Several people also found the details confusing because the money can’t be spent at large outlets or on certain items.
Funding the digital money giveaway
Originally the giveaway was planned for the first quarter, but the rollout was delayed over debates around the 450-500 billion baht cost. Last week an additional 122 billion baht budget for 2024 received preliminary parliamentary approval. Technically the giveaway is in the 2025 financial year, so the balance of the cost falls next year.
Meanwhile, the restrictions on the giveaway usage include:
- recipients must not be in prison
- recipients cannot have 2023 earnings of more than 840,000 baht ($23,260)
- recipients cannot have bank-like savings of more than 500,000 baht ($13,847)
- recipients must spend the money in face-to-face transactions
- money cannot be spent on government lottery tickets, alcohol, tobacco, cannabis, kratom products, Marijuana and kratom, gift certificates, cash cards, gold, diamonds, gemstones, gasoline, natural gas, electrical appliances, electronic equipment and communication tools.
