Thailand delays 15 billion USD digital wallet scheme, Illustrative photo (Photo: AFP/VNA)

Bangkok – Thailand’s Deputy Minister of Finance Julapun Amornvivat on October 19 announced that the scheme to give 10,000 THB (274 USD) in handouts via digital wallets to more than 50 million people in the country will not be started on February 1, 2024 as planned.

He said that the scheme requires more time to develop a safe system but the ministry will launch it within the first quarter of next year.

Previously, the Thai Prime Minister chose February 1, 2024, to roll out the scheme which is considered a measure to revive the Thai economy. Under the scheme, 10,000 THB of digital money will be given to every citizen aged 16 and over, at an estimated cost of 548 billion THB (15 billion USD).

The government said digital money will be allocated through a new “super app.”

Prime Minister Srettha Thavisin assessed that the multiplier effect of increased consumer spending could help the Thai economy grow by up to 5 per cent next year. He affirmed that increased tax revenue from economic activities will help pay part of the scheme.

However, a growing number of economists, including two former governors of the Central Bank of Thailand, believe that the policy poses a great risk to the economy as public debt is testing its limits.