Digital Currency for Economic Stimulus: Srettha Thavisin’s Proposal for Thailand

According to reports, real estate tycoon and Thai Prime Minister contender Srettha Thavisin has promised to distribute 10000 Thai baht (approximately $300) of digital currency to citizens aged 16 and above for local economic stimulus projects if elected as Prime Minister and formed a government after the May 14 election.

Thai Prime Minister Competitor: If the election is successful, a digital currency of 10000 Thai baht will be distributed to citizens aged 16 and above each

The upcoming Thai Prime Minister elections in May 2022 have generated significant interest and attention from both the public and the media. One of the most intriguing promises made by a candidate is that of real estate tycoon Srettha Thavisin. Mr. Thavisin has pledged to distribute 10,000 Thai baht (approximately $300) in digital currency to eligible citizens aged 16 and above, to be used for local economic stimulus projects if elected as the Prime Minister and formed a government. In this article, we will examine Thavisin’s proposal and explore its potential impact on Thailand’s economy and digitization efforts.

Background

Srettha Thavisin is a prominent businessman who has made his fortune in the real estate market. He owns several big-ticket properties across the country, and his net worth has been estimated by Forbes to be around $1.2 billion. Thavisin is a member of the Palang Pracharat party, which is currently the second-largest party in the Thai Parliament.
Thavisin’s proposal of distributing digital currency to citizens is part of his broader economic recovery plan for Thailand. The COVID-19 pandemic has had a significant impact on Thailand’s economy, with a sharp decline in tourism revenues and sluggish demand in the domestic market. Thavisin believes that stimulating local businesses through innovative measures like digital currency can revive the economy and create jobs.

The Proposal

Under Thavisin’s proposal, eligible citizens will receive 10,000 Thai baht in digital currency, which can be used for local economic stimulus projects. The projects can range from community infrastructure, such as roads, bridges, and schools, to small and medium-sized enterprises (SMEs) that have been hit hard by the pandemic. The digital currency will be issued through a secure mobile application, making it easier for citizens to participate in the program and easier for the government to track the outcomes.
Thavisin has also proposed using blockchain technology to ensure transparency and security in the distribution of the digital currency. Blockchain technology can create a tamper-proof record of all transactions, making it almost impossible to manipulate or cheat the system. The blockchain ledger can also be used to assess the impact of the economic stimulus program, providing valuable insights for future policies and programs.

Potential Impact

Thavisin’s proposal has generated both hope and skepticism among experts and citizens alike. Supporters of the plan believe that it has the potential to jumpstart the local economy, create jobs, and increase public participation in governance. Digital currency can also reduce the cost of transactions, making it easier for small businesses to compete and thrive.
However, others have questioned the feasibility and sustainability of the program. The initial cost of distributing digital currency to 50 million citizens, even if eligible citizens only receive half the amount, is significant. Additionally, the long-term impact of the program on the economy remains unclear.

Digitization Efforts

Thavisin’s proposal is in line with Thailand’s broader digitization efforts. Thailand has been at the forefront of adopting blockchain technology and has launched several initiatives to promote digital payments and e-commerce. The Bank of Thailand, the country’s central bank, is piloting a digital currency project called Project Inthanon, which aims to explore the use of blockchain technology in the financial sector. The Thai government is also promoting digital payments through QR codes and has set a target of 70 % of all transactions to be made digitally by 2025.
Thavisin’s proposal would further boost Thailand’s digitization efforts, making it a leader in blockchain-based economic stimulus programs. The program can serve as a model for other countries grappling with economic recovery after the pandemic.

Conclusion

Srettha Thavisin’s proposal of distributing digital currency for economic stimulus projects is an innovative policy approach that can revive Thailand’s economy and strengthen its digitization efforts. The use of blockchain technology in the program can enhance transparency and build trust among citizens. Though the proposal faces some challenges, the potential benefits cannot be ignored. If properly implemented, this policy can become a cornerstone of Thailand’s economic recovery and a blueprint for other countries to follow.

FAQs

1. What is digital currency, and how is it different from traditional currency?
Digital currency is a digital form of money that can be transferred electronically. Unlike traditional currency, it is not backed by a physical commodity like gold and operates independently of governments or central authorities.
2. Can citizens use the digital currency outside the economic stimulus program?
No, the digital currency can only be used for local economic stimulus projects targeted by the government.
3. How will the government ensure that the digital currency distribution is fair and transparent?
The government will use blockchain technology to create a tamper-proof record of all transactions, ensuring transparency and security.