- Thailand’s national digital wallet scheme is facing delays, leading to calls for an electoral commission investigation
- The plan would see 10,000 baht ($275) distributed to citizens over 16 years old to encourage usage
- The project’s $15 billion price tag has raised eyebrows and attracted criticism
Thailand’s planned national digital wallet scheme is facing delays, prompting calls for an investigation by the country’s electoral commission. Deputy Finance Minister Julapun Amornvivat announced the postponement of the scheme’s February 2024 launch to allow more time for system development, which will see 10,000 baht ($275) to citizens over 16 years old to encourage usage. The project is set to cost around 548 billion baht ($15 billion) with some believing the delays are down to the government still deliberation over funding.
Different From a CBDC
The Thai government’s objective with the digital wallet is to provide financial support to eligible citizens and stimulate the local economy, with Amornvivat emphasizing the need for additional time to ensure the security of the underlying system while assuring that the launch remains scheduled for the first quarter of 2024. It appears to be different from an all-out Central Bank Digital Currency, which the country has been developing and testing since 2018.
Reports indicate that the sub-committee responsible for the program is still deliberating over the funding source for the $15 billion project; the government had initially anticipated that the initiative could boost economic growth by 5% in the coming year, with increased tax revenue from economic activity contributing to the program’s cost.
Economists Question Financial Wisdom of the Plan
Unsurprisingly, not everyone is behind the scheme, with a growing number of economists, including two former Bank of Thailand governors, have said the policy presents too big a risk to the economy at a time when public debt is testing acceptable limits. Critics have also said that in its current form, the rich will also benefit from the scheme and that the money should be given only to those who really need it. The government has acknowledged that the scheme might be revised to exclude wealthier citizens.
Former Thai Senator Rosana Tositrakul has emerged as a prominent critic of the project and has called for the election commission to investigate the scheme’s legality. The use of the national budget to finance the digital handout has also raised questions regarding the program’s funding, potentially requiring debt issuance to cover the costs, concerns which have prompted Tositrakul to challenge the scheme’s legal standing.
