Thailand’s much-anticipated plan to distribute 10,000 baht in digital money to its citizens faces a setback. Deputy Finance Minister Julapun Amornvivat announced that the February 1 start date, set by Prime Minister Srettha Thavisin, will likely be postponed due to the need for a more robust security framework.
The scheme intends to give every Thai citizen, 16 years and older, a digital wallet loaded with 10,000 baht. This is meant for shopping within a 4-kilometre radius from their official residence, over six months. However, the specifics of the radius requirement are now under review and may be removed.
“The prime minister’s instruction was for the handout to start by February 1, 2024. But that date will not be met. It’s because we need more time to develop a stable and secure system. We can’t compromise on security of the system just to finish the work in time,” Julapun said.
Designed as an economic stimulus, the government hopes this handout will push the nation’s GDP growth towards the 5% mark annually. However, the initiative has not escaped criticism. Estimations show that the scheme would demand a whopping 560 billion baht from the state’s coffers, leading to concerns about its financial feasibility. Among the policy’s critics are several financial stalwarts, including former Bank of Thailand governors, ex-finance ministers, and a host of economists and scholars.
Julapun, who is at the helm of the subcommittee responsible for implementing this plan, mentioned that the source of funding and the handout’s terms remain undecided. The subcommittee is slated for a meeting on October 24, post which they intend to present their recommendations to the digital-money handout committee, led by PM Srettha.
Countering the suggestion of targeting this initiative at the more vulnerable sections of society, Julapun clarified that the primary goal is economic invigoration, not welfare. The deputy finance minister highlighted the country’s pressing need to rejuvenate its GDP growth, expressing confidence that this measure could drive it close to the 5% mark.
Addressing concerns about potential malpractices similar to the Yingluck Shinawatra government’s rice-pledging fiasco, Julapun assured that the current administration’s system would be foolproof against corruption.
“We are sure there will be no irregularities. But if any corruption case emerges, the government would certainly take legal action,” he added.
Earlier this year, Thailand’s Securities and Exchange Commission (SEC) banned crypto exchanges in the country from providing lending services as it prioritizes investor protection.
As part of the new regulations, exchange operators in Thailand are required to ensure that users acknowledge the risks associated with crypto trading before they can use their services. Furthermore, the SEC introduced a mandatory investor suitability assessment to determine the appropriate trading limits for users. These assessments will take into consideration factors such as the financial capability and risk tolerance of individuals.
