He said the mass deployment of digital wallets will give the economy a shot in the arm, followed by various stimulus measures such as generating income through soft power and raising the price of agricultural products, reports the Bangkok Post.
“The main idea of the economic stimulus policy is that GDP can grow by at least 5%, which we expect in 2024,” Mr Julapun said.
He said the multiplier effect of the cash handouts will see so much money circulating that it will be equivalent to at least B2trn.
About B30 billion of value-added tax (VAT) is expected to be collected as a result of the goods and services purchased.
The project, which does not require any registration, is tipped to reduce disparities in terms of people’s access to digital money. The user simply needs to download the new national wallet app to get their share.
The project will be driven by high-security blockchain technology so it is completely traceable. Eligibility conditions can be set in terms of age and spending parameters, he said.
The policy is expected to be launched in the first quarter of 2024.
The digital wallet can be used for six months at all local shops and businesses within four kilometres of people’s registered address, in a bid to stimulate local economies and prevent an over-concentration of income in urban areas.
Spending the money on cigarettes and alcohol is prohibited. It also cannot be used to repay debts or transferred into fiat - except for registered merchants under the VAT system.
The funding for the project would come from the state budget, causing a spike in the revenue collected for fiscal 2024, and a decrease in certain welfare programmes, namely the state welfare card. The project will cost an estimated B560bn.
To access the B10,000 of digital money, people will need to download the accompanying app and link it to their ID card.
Those who do not have a smartphone can use their 13-digit ID card number as authentication.