Thailand's new Prime Minister, Srettha Thavisin, announced a national digital currency airdrop program as part of efforts to revitalize the economy. Each Thai citizen aged 16 and above is set to receive 10,000 Thai Baht in digital currency, with an estimated cost of 548 billion Baht. The government plans to fund this program through a one-time 500 billion Baht loan, approved by the Thai State Council.
Further reading：Thailand’s Nationwide Digital Currency Airdrop Delayed to Q1 2024
However, a report from "The Nation" reveals opposition from the Thai State Council against the government's borrowing plans. The council believes that initiating a 500 billion Baht loan to address an 'emergency economic situation' is contradictory. If immediate economic stimulation is necessary, authorities should follow previous government practices of issuing executive orders rather than borrowing through legislation, as a law takes months to implement.
The proposed borrowing scale may breach Article 140 of the Thai constitution, which requires government loans outside the budget to be offset in the next fiscal year's budget. However, allocating 500 billion Baht in the 2025 budget to offset this loan seems improbable.
Despite the challenges, the Thai government plans to launch the airdrop in May. The initiative is part of the government's 4-year plan to achieve a 5% annual economic growth rate, aiming to break the cycle of low single-digit growth rates. Key details of the airdrop include:
- 50 million people to receive 10,000 Baht each.
- Funds must be used within six months.
- Airdropped funds to circulate in the economy until April 2027.
- Special borrowing to finance the airdrop.
- Exclusions for individuals with monthly incomes over 70,000 Baht or savings above 500,000 Baht.
- Distribution through the Bank of Thailand's Paotang App.
- Restrictions on purchasing cigarettes, cannabis, and alcoholic beverages.
- Proposal of the borrowing bill to the parliament by early 2024.
Secretary-General of the Prime Minister's Office, Prommin Lertsuridej, asserts the legality of this flagship policy and its financing. The State Council's feedback will be instrumental in ensuring the smooth rollout of the plan. When asked about the policy's potential impact on Thailand's GDP this year, Lertsuridej stated that it is just one part of a diversified policy approach to invigorate the economy.
Further reading：Thai Banking Titan Kasikornbank Dives into Crypto with Satang Exchange Takeover and $100M Web3 Fund!
- Thailand's ambitious digital currency airdrop faces challenges from the State Council.
- The government remains committed to implementing the program and broader economic policies.
Click here to register with DigiFinex and enjoy cryptocurrency trading.
Keywords: Thailand, Digital Currency Airdrop, Economic Stimulus, Srettha Thavisin, State Council, Thai Economy, Borrowing Plan, Thai Constitution, GDP Growth, Paotang App
All Comments