Thailand to Launch Digital Cash Handouts Amid Economic Challenges

Thailand's government, led by Prime Minister Srettha Thavisin, plans to implement a digital cash handout scheme titled 'Digital Wallet' starting in August. This program aims to boost the economy by distributing 10,000 baht (USD 275) to 50 million citizens. Despite criticisms from economists and financing challenges, the government remains committed to its implementation.

Thailand's prime minister announced on Monday that eligible businesses and individuals can register from August for digital cash handouts, a controversial program intended to stimulate the economy.

Named the "Digital Wallet," the initiative aims to distribute 10,000 baht (about USD 275) to 50 million citizens in digital currency, with registration beginning on August 1, per instructions from Prime Minister Srettha Thavisin.

Although economists have criticised the program's efficacy, the government argues that the scheme will significantly enhance GDP growth by 1.2 to 1.6 percentage points. The state Bank for Agriculture and Agricultural Cooperatives initially planned to fund the project, but it will now be financed from the 2024 and 2025 fiscal budgets. The plan excludes certain shop owners and fraud-prone cash recipients.

(With inputs from agencies.)