Orbit: How Thailand’s New Crypto Giveaways Will Drive Up Mass Adoption for Digital Assets
Recently, in light of the increasing global adoption of digital assets and the shift towards a more inclusive economy, the Phreu Thai Party of Thailand, which is also the leader for Thailand’s new coalition party, is making good on its promise to giveaway 10,000 baht worth of crypto tokens to every Thai citizen aged 16 and over.
This economic stimulus which is equivalent to $285 USD for every eligible Thai citizen, will consist of blockchain utility tokens being deposited into the allocated digital wallets of the masses.
As such, one would be adept to see that the drive is aiming at spurring digital asset adoption with the added factor of the digital wallets coming into the narrative, considering that most countries have already begun their own versions of Central Bank Digital Currencies (CBDC) programme, testing integration and pilot drives.
The giveaway will take place in 2024, in line with the Bitcoin Halving event, and further consolidation of regulations by the SEC along with rampant institutional adoption of digital assets and ETFs offerings by Blackrock and Vanguard; which will potentially see the price of cryptocurrencies going up in line for next year.
Paopoom, Rojanasakul, deputy secretary-general of the party said that in addition to the stimulus, the objective is to also roll out a nationwide blockchain-based financial payments system, adding on to the fact that the party’s website states that it is also supportive of a Thai central bank digital currency.
This latest development in the Thai political and financial sphere is something that Velo can definitely capitalize on.
What is Orbit?
This is where Velo’s Orbit will come into play.
Consider Velo Lab’s own crypto payments superapp in line with the new digital wallets that the Thai government will be depositing the giveaways in. Multiply the $285 amount by every eligible Thai citizen and you see the potential in 2024.
What’s more, Orbit capitalizes on the current QR codes payment system for ease of use when it comes to payments, and then you have the potential to essentially onboard the first wave of users in line with the government’s current drive.
How is that for being at the right place at the right time?
To date, product development for Orbit’s MVP has been on track and Velo is currently garnering retail merchants, as well as OTC partners and on/off ramp solutions to further expand the ease of flow within Orbit’s ecosystem. The more liquidity access one has in terms of two way channels between various participants in the transaction flow, the more Orbit can be used seamlessly to allow for better adoption in the everyday lives of first, the Thai consumer, and then the world.
Other Points about the “Giveaway” and its Blockchain Adoption
As opposed to giving away cash, the main purpose of the Thai blockchain giveaway is to spur local businesses and consumers to spend the token on certain essential items, such as food, water and medicine. The tokens cannot be used online, exchanged for cash and will expire after 6 months. They will also be based on national identities, much like the current social security system but those without a mobile phone can use their IDs to receive a code.
Thailand’s Current Progress in its CBDC “Push”
The Bank of Thailand is already very progressive in its drive for retail CBDC usage, which may or may not use blockchain technology. Presently, it is running an exclusive 10,000 person digital baht pilot in conjunction with 3 Thai banks.
Given the short timeframe for the giveaway, of 6 months before expiry, the utility token aspect of it might be seen as an attempt to include it into the overall CBDC drive, but no mention of that has been noted as yet.
Another approach would be to use an existing digital wallet solution already in use for the government stimulus, which is the Pao Tang app developed by the Krung Thai Bank (KTB). But, the government might prefer to use something else, to disassociate itself from one single bank.
Perhaps, this time, Velo Lab’s Orbit might come into play, given the fortuitous tailwinds.