Thailand’s digital wallet project: Green light to make cash splash

[webfact]

 

The government of Thailand has given the green light for the formation of a committee for its ambitious digital money handout scheme, otherwise known as the digital wallet project.

 

Slated for launch in February, the initiative aims to stimulate the economy by providing each Thai citizen above the age of 16 with 10,000 baht (US$269) in digital money.

 

The project, requiring a hefty fund of around 560 billion baht, is targeted at specific expenditure areas to boost short-term economic activity.

 

Prime Minister Srettha Thavisin has been named the chair of the newly formed committee. Deputy prime ministers and ministers for commerce, foreign affairs, and interior, Phumtham Wechayachai, Parnpree Bahiddha-Nukara, and Anutin Charnvirakul respectively, serve as the deputy chairs alongside the digital economy and society minister, Prasert Chantararuangthong.

 

by Mitch Connor

Picture courtesy of Voice TV.

 

Full story: The Thaiger 2023-10-05

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[2baht]

8 minutes ago, webfact said:

10,000 baht (US$269)

What's the deposit for a new pick up or a Honda Click? ????

[Trippy]

The 10,000 will be gone within a week, the national debt this will cause will be around for decades. 

[bamnutsak]

26 minutes ago, webfact said:

for the formation of a committee

Facepalm.

 

 

I'm surprised they can go to the toilet without forming a committee.

 

 

[edwinchester]

10 minutes ago, Trippy said:

The 10,000 will be gone within a week, the national debt this will cause will be around for decades. 

Not if the 10k is drip fed to recipients over many months. No way will the Govt drop everyone the whole wad at once. Best guess would be 300 bht per week or 1k a month.

[Trippy]

15 minutes ago, edwinchester said:

Not if the 10k is drip fed to recipients over many months. No way will the Govt drop everyone the whole wad at once. Best guess would be 300 bht per week or 1k a month.

That's the first time I heard that. Did you read it somewhere?

[grandpa]

A digital wallet is no good for the elderly who do not possess a smartphone, or those people in Isaan who live more than 4 km from shops that will accept the scheme!  My 90 year old father-in-law fits both of those categories so it will be useless for him.

[proton]

CoCo the clown, where is the 560 billion baht coming from and why not spend that on something worthwhile other than bribes for votes?

[edwinchester]

5 minutes ago, Trippy said:

That's the first time I heard that. Did you read it somewhere?

Just an inspired guess based on past handouts.

Agree with the sentiment in your post though except that I'd wager the 10k wouldn't even last a couple of days if it were handed out in one go.

[sirineou]

21 minutes ago, Trippy said:

The 10,000 will be gone within a week, the national debt this will cause will be around for decades. 

That's not how this works,

The below is a over simplified explanation. 

Two terms that come into play are "Propensity to spend" and the multiplier effect. 

Propensity to spend is the percentage of this amount that is spend on the average. In Thailand I am sure is is close to 100%

The multiplier effect : is how many times that  10,000 baht will circulate in the economy . 

So I spend 10.000bht buying shiny beads, Now the shiny bead store owner  has 10.000 with which to buy beer, the beer store owner has 10.000 to buy som tam and so on and so on.

at each transaction (or most of then) a 7% tax is collected. After about 15 cycles the goverment has recouped the 10,000 and more , and the economy is stimulated. 

That's the theory. 

Of course there are some problems. The stimulus could be saved and not spend at all, or it could be spend outside the country. 

 

[Enzian]

13 minutes ago, grandpa said:

A digital wallet is no good for the elderly who do not possess a smartphone, or those people in Isaan who live more than 4 km from shops that will accept the scheme!

You missed the part about the army helicopters they will use to drop money over Isaan.

[Olmate]

3 minutes ago, sirineou said:

That's not how this works,

The below is a over simplified explanation. 

Two terms that come into play are "Propensity to spend" and the multiplier effect. 

Propensity to spend is the percentage of this amount that is spend on the average. In Thailand I am sure is is close to 100%

The multiplier effect : is how many times that  10,000 baht will circulate in the economy . 

So I spend 10.000bht buying shiny beads, Now the shiny bead store owner  has 10.000 with which to buy beer, the beer store owner has 10.000 to buy som tam and so on and so on.

at each transaction (or most of then) a 7% tax is collected. After about 15 cycles the goverment has recouped the 10,000 and more , and the economy is stimulated. 

That's the theory. 

Of course there are some problems. The stimulus could be saved and not spend at all, or it could be spend outside the country. 

 

Good summary, far to complex for Trippy and co.

[huangnon]

Seems like just a ruse to introduce digital currency to the Thai population. Similarly to the Chinese system, it is used to control people and limit movement, protest, etc.

[FritsSikkink]

18 minutes ago, grandpa said:

A digital wallet is no good for the elderly who do not possess a smartphone, or those people in Isaan who live more than 4 km from shops that will accept the scheme!  My 90 year old father-in-law fits both of those categories so it will be useless for him.

Give him a smartphone.

[KannikaP]

20 minutes ago, edwinchester said:

Just an inspired guess based on past handouts.

Agree with the sentiment in your post though except that I'd wager the 10k wouldn't even last a couple of days if it were handed out in one go.

My Mrs just told me that it must be spent within 6 months, so Bht 1000 a month is no good.

There is only one shop within 4 kms of my house where this money can be spent.

[Moonlover]

25 minutes ago, grandpa said:

A digital wallet is no good for the elderly who do not possess a smartphone, or those people in Isaan who live more than 4 km from shops that will accept the scheme!  My 90 year old father-in-law fits both of those categories so it will be useless for him.

The easy solution to that would be to issue them with limited use debit card. Such a scheme, the so called 'Welfare Card' is already in use. It won't answer all your concerns but will cover most problems.

[MeePeeMai]

15 minutes ago, sirineou said:

Of course there are some problems. The stimulus could be saved and not spend at all, or it could be spend outside the country. 

Nope, must be spent within 4 kilometers of their documented domicile, can only be used to purchase items on their list of approved items, only used at participating "approved" retailers (i.e. Somchai's streetcorner Somtum cannot accept it) and it has a deadline - use it or lose it. Those working or living far from their house book address will have to return home to use it.

 

Sorry folks, lottery tickets are not on the list of approved items 555

[MichaelHunt]

28 minutes ago, proton said:

CoCo the clown, where is the 560 billion baht coming from and why not spend that on something worthwhile other than bribes for votes?

The money is coming from us. That's why they need to tax our transfers of money into Thailand from next year.

[Celsius]

Surely next year when you are required to file your tax return, a Farang mug will be eligible for such perks?

[WHansen]

Much critisism from people with plenty of cash, which is no suprise.....

10,000 Baht to the majority of population will make a real difference and ease the poverty for a short time.

[edwinchester]

1 hour ago, KannikaP said:

My Mrs just told me that it must be spent within 6 months, so Bht 1000 a month is no good.

There is only one shop within 4 kms of my house where this money can be spent.

The committee that sets up the scheme hasn't even been formed yet so not sure where the 6 months comes from.

[ikke1959]

Doomed to fail.  how is it working? People registered in the blue family book? Many are not living in these places. Spending 4km from your house? Only a 7/11available in dome areas.  Old, disabled, handicapped or poor people who don't have a smart phone or are unable to go to a shop? And the list can go on. 

[VinnieK]

Roundabout way to introduce a digital wallet.

The cheese (free money) and the trap (digital ID, wallet etc)

 

[bizboi]

4 hours ago, bamnutsak said:

Facepalm.

 

 

I'm surprised they can go to the toilet without forming a committee.

 

 

They have to ….. they can only deal with one little sh*t at a time!!!

[kcpattaya]

Useless incentive. 

[bradiston]

I hope Thaksin realises he will have to spend his in the prison canteen.

[Skeptic7]

To be funded off the backs of long term expats on pensions, by taxing any future monies brought into Lie-land starting...wait for it...January 2024. 

[bradiston]

2 hours ago, WHansen said:

Much critisism from people with plenty of cash, which is no suprise.....

10,000 Baht to the majority of population will make a real difference and ease the poverty for a short time.

Easing poverty for a short time is not actually easing poverty at all. Long term poverty is a curse and almost impossible to get out of. This will have next to no effect whatsoever. You might as well buy 10,000 THBs worth of lottery tickets. Maybe whole villages will.

[deejai33]

3 hours ago, Olmate said:

Good summary, far to complex for Trippy and co.

But sounds too much like a perpetual motion machine to me.

 

The bead shop owner had to buy the beads in the first place, so he does not have 10,000 baht to spend at beer shop.  Maybe has 3,000 to spend.  Same for beer shop owner.  Soon dwindles to zero.

 

And VAT is claimable by shop keepers, so only 1 lot of 7% is ever collected.

 

[2baht]

3 hours ago, sirineou said:

That's not how this works,

The below is a over simplified explanation. 

Two terms that come into play are "Propensity to spend" and the multiplier effect. 

Propensity to spend is the percentage of this amount that is spend on the average. In Thailand I am sure is is close to 100%

The multiplier effect : is how many times that  10,000 baht will circulate in the economy . 

So I spend 10.000bht buying shiny beads, Now the shiny bead store owner  has 10.000 with which to buy beer, the beer store owner has 10.000 to buy som tam and so on and so on.

at each transaction (or most of then) a 7% tax is collected. After about 15 cycles the goverment has recouped the 10,000 and more , and the economy is stimulated. 

That's the theory. 

Of course there are some problems. The stimulus could be saved and not spend at all, or it could be spend outside the country. 

 

Daeng the rice farmer will find that interesting!