- The opposition is against the plan to distribute digital funds to 55 million people
- The Thai Cabinet finds the plan legal, says it can be implemented by this spring
A government report on the methods to fund a controversial Thailand government plan to give each citizen of legal age 10,000 baht ($286) has deepened speculation, Cointelegraph reported. The Thai Office of the Council of State has reportedly taken a negative view of the plan to distribute the digital funds to 54.8 million eligible people as an economic stimulus.
According to the Council, the government should have passed a law to this end rather than propose a bill to borrow the money it needs. It could take months to fund the plan through lawmaking initiatives.
Addressing concerns
According to a member of the Thai Cabinet, the plan is legal and could be implemented by the spring of this year. On the other hand, opposition politicians expressed concern and are preparing for a special debate in the Senate.
Members of the government make up the Council of State, which the prime minister chairs. Its opinions are impactful but not binding.
Problems and delays
The original plan was to distribute the digital funds on Feb. 1, but it was delayed due to resistance from the opposition, who consider it a risky venture and an illegal populist ploy on the pro-crypto prime minister’s part. Supporters disagree, claiming it would help the economy grow by 5%.
The delay of the program is accounted for by funding issues. There has also been a delay in the development of the app that will be used to distribute the funds.
Merchants can use the electronic baht, but not exchange it for cash. Each user must pay a small fee to undergo a Know Your Customer procedure.
The electronic baht is not the same as a central bank digital currency (CBDC). The Central Bank of Thailand has no plans to launch a CBDC.
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