Thailand Approves $14 Billion ‘Digital Wallet’ Program in Fiscal Debate

The Thai government has reportedly approved a $14 billion digital distribution program amid a debate over the country’s economy.

The Thai government has received approval to borrow for its 500 billion baht ($14 billion) digital distribution program, Reuters reported on Monday. The decision is a major move in the financial debate surrounding Thailand’s slow-growing economy

Deputy Finance Minister Julapun Amornvivat confirmed that the Office of the Council of State, an advisory group, has concluded that there are no legal obstacles to using state budget funds to implement the initiative. The program, a key policy of the ruling Pheu Thai Party, involves the allocation of 10,000 baht (about $300) to each of the 50 million Thai citizens for spending in local communities. Bitcoin mining

Thailand’s Digital Wallet Program Raises Concerns

Slow economic growth in Southeast Asia has led some economists to argue that the decision could pose an inflationary risk.

However, the government believes the program will benefit the economy. Julapun reportedly said the government could continue the program in May and fund it through borrowing.

Earlier, local reports said the Council of State had recommended against the government’s plan to enact a loan bill for the digital wallet program.

The Nation’s sources said they were concerned that the borrowing could violate Article 140 of the Constitution, which requires the government to offset any loans outside of the budget bill in the next fiscal budget.Litecoin Miner

Bank Token Financing Advisory

The report noted that in addition to inflation concerns, the opposition also emphasized that borrowing 500 billion baht for the program could violate Section 53 of the 2018 National Fiscal and Financial Discipline Act. This provision only allows off-budget borrowing in emergency situations.

Meanwhile, Thailand is one of the countries where leading banks, such as Kasikorn Bank, are leading companies to explore alternatives for financing digital assets .

As CoinGape previously noted, Kasikornbank Pcl is actively advising its clients on token offerings for fundraising purposes, signaling a significant change in their strategy towards digital assets.