Thailand Approves ‘Digital Wallet’ Plan of $14Bn Amid Fiscal Debate: Report

Thailand’s government has received approval to borrow funds for its 500 billion baht (approximately $14 billion USD) digital handout program, Reuters reported on Monday. This decision represents a major move during a financial debate surrounding Thailand’s slow-moving economy

Deputy Finance Minister Julapun Amornvivat confirmed that the Office of the Council of State, an advisory panel, found no legal obstacles to using state budget funds for this initiative. The program, a key policy of the ruling Pheu Thai party, involves distributing 10,000 baht (about $300 USD) to each of the 50 million Thai citizens for spending within local communities.

Thailand’s digital wallet plan has concerns

The Southeast Asian economy showed slow growth, leading to some economists citing potential inflation risks due to the decision.

However, the government argued that the program would benefit the economy. Julapun was quoted saying that the government can proceed with the scheme in May, funded through borrowing.

This comes after local reports previously indicated that the Council of State had advised against the government’s plan to enact a loan bill for this digital wallet scheme.

Sources to The Nation claimed that they raised concerns that this borrowing might violate Article 140 of the Constitution, requiring the government to offset any loans outside the budget bill in the next fiscal budget.

Token financing consulting by banks

Apart from inflationary concerns, the opposition also highlighted that borrowing 500 billion baht for this scheme might breach Article 53 of the 2018 State Fiscal and Financial Discipline Act, the report noted. The article allows off-budget borrowing only in urgent situations.

Meanwhile, Thailand is one of the nations where leading banks, such as Kasikornbank Pcl, are guiding businesses in exploring digital asset financing alternatives.

As previously noted by CoinGape, Kasikornbank Pcl is actively counseling its clients on token issuance for fundraising purposes, indicating a substantial change in their strategy towards digital assets.