Explainer: Why Thai central bank and others oppose ‘digital wallet’ scheme
Bank of Thailand (BOT) economists have expressed opposition to the government’s digital wallet handout scheme, fearing its long-term impact on the Thai economy.
In the latest signs of a rift between the central bank and Srettha Thavisin’s new administration, BOT officials have likened the 560-billion-baht welfare scheme to offering poisoned honey to the people. And implementing the distribution of 10,000 baht in digital money to all Thais over the age of 16 will not be as straightforward as it seems, they add.
Widespread opposition was ignited when the digital wallet scheme was included as one of five urgent policies to be implemented after the Pheu Thai-led coalition government came to power. The government is hoping the digital handout will stimulate Thailand’s economic recovery.
Starting from February 1 next year, 56 million Thai citizens aged 16 and above will receive 10,000 baht each through digital wallets.
Among experts who object to the scheme is former finance minister Korn Chatikavanij, who says the digital handout lacks detailed planning. It prioritises political outcomes over development and poses a significant threat to Thailand's economic future, he said.
The government should instead redirect the resources towards solving people's debt problems and forging social and economic reforms to prepare for rapid changes from technology, an ageing society, and renewable energy, he added.
Korn added that this coalition government is more stable than it appears since political conflict has been reduced by cross-party blending. However, the public would be satisfied if the new administration used taxpayers’ money for the benefit of the people, he said.
"I believe the majority of people are willing to accept any government that benefits them. Every government has a legacy. How people remember this government will depend on the prime minister,” the former finance minister said.
