Thailand's plan to distribute 10,000 baht ($286) to all citizens over 16 through digital wallets has encountered a potential roadblock.
Thailand's plan to distribute 10,000 baht ($286) to all citizens over 16 through digital wallets has encountered a potential roadblock after the Office of the Council of State provided the government with an assessment of its funding methods.
The council reportedly expressed a negative view on the government's proposal to borrow the necessary funds through legislation, stating that if the economic situation warranted such a measure, it should have been enacted by decree. The council also noted that funding the plan through legislation would take several months.
However, Deputy Finance Minister Julapun Amornvivat claimed that the council ultimately concluded that the plan was legal and could be implemented as expected on May 1. Meanwhile, opposition politicians are preparing for a "special Senate debate" to address concerns about the plan, among other issues. Prime Minister Srettha Thavisin is also reportedly planning a government meeting next week to discuss funding for the project.
The Council of State's report will not be released to the public, but the government was allowed to disclose its opinion. The Council of State is an advisory body chaired by the prime minister, and its opinions are influential but not binding.
The distribution of the funds was originally scheduled for February 1 but was delayed due to funding complications and the slow development of the "super-app" wallet needed to implement the distribution.
The plan has faced resistance since its proposal, with some opposition members calling it a risky and unconstitutional election ploy by the pro-crypto prime minister. Supporters, on the other hand, believe it could lead to a 5% growth in the Thai economy.
It is important to note that the digital baht used in this plan is not a central bank digital currency (CBDC). Thailand launched a CBDC sandbox in June 2023, but the Bank of Thailand has stated that it has no plans to launch a CBDC at this time.
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