FX.co ★ Thailand to distribute digital cash to boost economy

The Thai government has announced a plan to distribute 10,000 baht (approximately $270) to each citizen over the age of 16 as a digital deposit, aiming to stimulate domestic consumption and invigorate the economy. Slated for the fourth quarter of 2024, the initiative, as stated by Prime Minister Srettha Thavisin, intends to funnel a total of $13.67 billion into the economy. The move is anticipated to significantly boost local spending. Under the scheme, recipients are required to spend their digital currency within a 6-month period, exclusively at businesses located within a 4-kilometer radius of their homes. This constraint is designed to promote local economic growth and encourage residents to support neighborhood businesses. To access the digital funds, Thai citizens will need to download a specific application or use a personal code linked to their national identification cards, integrating technology into the disbursement process. The Prime Minister anticipates visible outcomes from this campaign by early next year. However, critics argue that addressing structural economic issues would be a more effective approach to solving the country's economic challenges than digital cash giveaways. Skepticism aside, the government's novel approach to economic stimulus is drawing attention both domestically and internationally. The initiative is part of a broader trend of innovative economic solutions being explored worldwide, such as Zimbabwe's recent decision to adopt a new gold-backed currency to tackle hyperinflation, setting a fixed exchange rate of 13.5 ZiG units to one US dollar. Both Thailand and Zimbabwe's efforts highlight a global shift towards unconventional methods in tackling economic challenges.