Thailand’s Nationwide Digital Currency Airdrop Delayed to Q1 2024
New Leadership, New Visions
After Thailand’s real estate magnate, Srettha Thavisin, was elected as the new Prime Minister in August, he proposed a digital currency airdrop scheduled for February 1st, next year. The initiative aimed to boost Thailand’s economy by gifting every Thai citizen, aged 16 and above, a digital currency valued at 10,000 Thai Baht (around $280). The estimated total cost stands at a staggering 548 billion Thai Baht (approximately $15 billion).
Change in Schedule
However, according to Vietnam News Agency reports, Deputy Finance Minister Julapun Amornvivat announced on the 19th that the digital currency plan would be postponed. Instead of the initial February 1st, 2024 launch, more time is needed to develop a secure system, pushing the launch to Q1 2024.
The Strategy Behind the Airdrop
Thailand’s government previously revealed the airdrop would be facilitated through a new ‘super app’. Thavisin projects that the resulting increased consumer spending could boost the country’s economic growth by 5% next year. The tax revenues generated from these economic activities will cover part of the project’s expenditures.
Facing Criticism
Despite the optimism, a rising number of economists, including two former governors of the Bank of Thailand, have criticized the policy. They warn of significant risks to the Thai economy, especially at a time when the nation is grappling with high debts. Experts suggest targeting the airdrop towards those genuinely in need, and there’s acknowledgment from the government about potential modifications to exclude the wealthy.
Funding Sources: A Topic of Debate
The Thailand Development Research Institute has speculated that funding for the airdrop could potentially come from the 2024 fiscal year revenue. Another possible source is government borrowing, with data from June revealing that Thailand’s public debt limit is at 61.15% of GDP.
Unsettled Matters on Airdrop Strategy
Julapun Amornvivat, leading the airdrop project, has mentioned that the government might abolish the initial plan which restricted the digital currency’s use within a 4 km radius of one’s residence. His committee has not yet settled on the funding sources and airdrop conditions, but they plan to convene on the 24th and present their proposal to the digital currency distribution committee chaired by Thavisin.
Stimulating the Economy, Not Welfare
Responding to suggestions to target the airdrop mainly towards vulnerable groups, Julapun clarified that the plan aims to stimulate the economy rather than act as a welfare policy. He confidently dismissed concerns over possible regulatory violations, stating that the government’s developing system would effectively prevent any corrupt activities: “We’re confident there won’t be any regulatory violations. However, should any corruption emerge, the government will undoubtedly take legal action.”
Keywords: Thailand, digital currency, airdrop, Srettha Thavisin, economy, Julapun Amornvivat, super app, Bank of Thailand, debt, GDP, funding, welfare, corruption
