Thailand's Digital Wallet Fund Distribution Plan Faces Obstacles Amid Criticism
Summary:
The Thai government's plan to distribute 10,000 baht ($286) to citizens over 16 via digital wallets faces potential hurdles after the Office of the Council of State critiqued its funding strategies. Critics label it a risky election ploy while supporters expect it to boost the economy. Originally meant to launch on February 1, the plan was delayed due to funding issues and a slower than expected development of the required 'super-app'. The Council of State, an advisory body, has reportedly given the plan a green light but emphasized that the process must align with financial laws and be properly reviewed.
A contentious initiative by the Thai government to disperse funds to citizens over 16 via digital wallets is potentially encountering further obstacles, following an analysis of its funding strategies by the Office of the Council of State. As per The Nation, a local Thai media outlet, the council has expressed dissent on the proposal to distribute 10,000 baht (around $286) to approximately 54.8 million Thais, intending it to jolt the local economy. The council suggested that the government should have executed the stimulus measure through a decree rather than proposing a bill to source the required funds which could take months, if it truly perceived the economic scenario warranted such a step.
Deputy Finance Minister Julapun Amornvivat afterward maintained that the council had concluded the plan was lawful and would be operative on the projected date of May 1, claimed the same publication. Meanwhile, members of the opposition are organizing a distinguished Senate discussion, aiming to raise and address doubts about the initiative among other topics. Reports suggest that Prime Minister Srettha Thavisin is planning a governmental assembly next week to discuss financing the project.
The Nation further reports that while the council's investigation won't be opened to the public, the government has permission to disclose its position. Comprising government members and chaired by the prime minister, the Council of State functions as an advisory entity. Its judgments do carry significant weight but are not legally binding.
Originally set to kick-off on February 1, the digital wallet monetary distribution scheme has faced opposition from its inception, with some critics labeling the move as a risky, unconstitutional election strategy by the pro-crypto PM. Supporters, on the other hand, predict the initiative would spur a 5% expansion in the Thai economy. The delay in the plan's launch, announced in October, was due to funding issues and slower than expected progress in developing the 'super-app' wallet which is key to the distribution of the monetary grant.
In a reference to vendors who are not part of the tax system, reports suggest they will be able to utilize this electronic currency but won’t be able to cash it in. The obligatory ‘Know Your Customer’ procedure will incur a fee of 100 baht (about $2.86) per user. The digital baht is not viewed as central bank digital currency (CBDC). A CBDC sandbox was launched by Thailand in June, lasting three months, however, the Bank of Thailand declared it currently has no plans to initiate a CBDC.
Published At
1/9/2024 12:40:00 AM
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