The Thailand government's plan to deposit money into digital wallets for all citizens over 16 as an economic stimulus is facing uncertainty, with conflicting reports on the appraisal by the Office of the Council of State. Thai publication The Nation initially reported that the council took a negative stance on the plan, suggesting it should have been enacted by decree instead of proposing legislation for borrowing funds. However, Deputy Finance Minister Julapun Amornvivat later claimed that the council concluded the plan was legal and could be implemented as expected on May 1. The council's report will not be released to the public, but it allows the government to disclose its opinion.
Key Points:
Controversial Plan: The Thailand government's plan involves distributing 10,000 baht ($286) to 54.8 million Thai citizens through digital wallets as an economic stimulus.
Council of State's Appraisal: The Office of the Council of State reportedly provided an appraisal of the funding methods for the plan. Initial reports suggested a negative stance, emphasizing the need for decree enactment rather than legislation.
Conflicting Reports: Deputy Finance Minister Julapun Amornvivat contradicted initial reports, claiming that the council concluded the plan was legal and could proceed as expected on May 1.
Opposition's Concerns: Opposition politicians are preparing for a "special Senate debate" to address concerns about the plan. Some view it as a risky and unconstitutional election ploy by the pro-crypto prime minister.
Launch Delay: The distribution of money was initially slated for Feb. 1, but it was delayed in October due to funding complications and the slower-than-anticipated development of the "super-app" wallet.
Vendor Access to Digital Baht: Vendors not "part of the tax system" would reportedly be able to use the electronic currency but not convert it into cash. A mandatory Know Your Customer procedure would cost every user 100 baht ($2.86).
Digital Baht vs. CBDC: The digital baht is distinct from the central bank digital currency (CBDC). Thailand had launched a CBDC sandbox in June, but the Bank of Thailand stated it had no plans to launch a CBDC.
Conclusion: The Thailand government's plan to distribute digital baht as an economic stimulus is facing uncertainty following conflicting reports on the appraisal by the Office of the Council of State. Initial reports suggested a negative stance, emphasizing the need for decree enactment rather than legislation. However, Deputy Finance Minister Julapun Amornvivat contradicted these reports, claiming that the council concluded the plan was legal and could proceed as expected on May 1. The opposition is preparing for a Senate debate to address concerns about the plan, and the prime minister is reportedly planning a government meeting on funding the project next week. The digital baht plan has faced resistance and criticism since its proposal, with some viewing it as an election ploy by the pro-crypto prime minister.
(DEREK ANDERSEN, COINTELEGRAPH, 2023)