Thailand Delays $15 Billion Crypto Air Drop, Cites Need for Enhanced Security System

Thailand’s plan to airdrop $15 billion crypto to its citizens will be delayed with the government citing the need for an enhanced security system.

The government had planned to distribute 10,000 baht ($275) in digital money to every Thai citizen aged 16 and over on Feb 1, but deputy finance minister Julapun Amornvivat said the initial timeline will be extended to ensure the development of a secure system, The Bangkok Post reported.  

Despite the setback, Thailand is determined to implement the program within the first quarter of the coming year, the report added.

Security Concerns Prompt Delay

Amornvivat emphasized the importance of maximum security in the digital money distribution system, which necessitated an extension of the development timeline.

“We cannot trade the system for time,” he said. 

A sub-committee tasked with identifying the financial sources for the program also faced challenges and is scheduled to reconvene for further discussions, casting doubts on how the initiative will be financed, the story said.

#BangkokPost: The government cannot hand out 10,000 baht in digital money to people on Feb 1 as planned earlier because it will take longer to develop a secure system, according to Deputy Finance Minister Julapun Amornvivat. #Thailand #politics #Finance #digitalwallet… pic.twitter.com/A1BQMwWc91

— Bangkok Post (@BangkokPostNews) October 19, 2023

The government had envisioned the digital money handout helping to stimulate economic growth, and forecast a potential 5% expansion in the coming year due to increased consumption spending. Tax revenue generated from this economic activity was expected to help cover the scheme’s costs, the story added

Growing Skepticism from Economists

The plan is facing criticism from economists, including former Bank of Thailand governors, who express concerns about the risk it poses to the economy, the report said.

The government has considered sourcing funds for the scheme through borrowing from state entities, a strategy aimed at limiting the increase of public debt. Some critics argue that digital money should be directed solely to those in genuine need and the the government has acknowledged the possibility of revising the scheme to exclude the wealthy, the Bangkok Post said. 

Thailand Critics Calls for Scrutiny and Suspension

Former senator Rosana Rositrakul raised concerns about the digital wallet scheme, prompting her to petition Thailand’s State Audit Office (SAO). She believes that the scheme could be potentially damaging, calling for a comprehensive examination and suspension if it is found to violate the constitution, and relevant laws, or pose risks to the financial and monetary systems, the story said.

Rositrakul’s petition outlines six key points, including the scheme’s unworthiness, violation of the Currency Act, potential financial burdens to the country, evasion of state budget spending principles, involvement in public debt concealment, and non-compliance with Section 9 of the State Fiscal Discipline Act of 2018. She has drawn parallels to previous government schemes, such as the rice-pledging scheme, that resulted in negative consequences, the report said.

“That was useless because we lost our money,” Rositrakul said. “I, as a taxpayer, am doing the duty of a citizen in calling for concerned organisations to look into this matter.”

She has also urged the Election Commission to look into the legality of the government’s proposed distribution, another report said.

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