Thailand May Tell Us a Great Deal About the Future of Money
Thailand is offering a preview of how Central Bank Digital Currencies (CBDCs) could reshape financial systems. An intriguing window into the future of money and how central bank digital currencies (CBDCs) might be used has opened up in Thailand.
This future holds promise but has many hazards as well. Countries barrelling towards it, and especially their citizens, should give it careful thought.
The government had initiated phases of its digital wallet scheme to distribute $280 (roughly half of monthly per capita income) to 50 million low-income citizens—stimulating short-term consumption. The CBDC features include direct transfers, spending restrictions, and expiration dates to encourage immediate consumption.
However, these same features highlight potential risks—governments could regulate spending, exclude certain groups, and enforce social policies through monetary controls. Thailand’s experiment thus offers valuable lessons on both the promise and perils of a digital currency-driven future.