Thailand's Digital Wallet Policy Faces Early Challenges as Millions Register

Thailand's ambitious policy to distribute 10,000 baht to most of its citizens faced a major glitch on its first day, causing the registration system to crash due to overwhelming demand. Critics argue the plan is fiscally risky, while the government remains optimistic about its potential to boost the economy.

Thailand's bold digital wallet policy, promising a 10,000 baht ($282) handout to most citizens, confronted a significant hurdle on its launch day as millions attempted to register, crashing the system. By early afternoon, 10.5 million people had applied, leaving millions more unable to access or complete their registration due to missing text message passcodes.

Despite its potential to invigorate a financially-strained economy, the policy has sparked criticism from economists and former central bank governors who deem it fiscally imprudent. Prime Minister Srettha Thavisin, a staunch supporter of the scheme, maintained that initial hiccups are expected and the government is striving to resolve issues. Parliament approved an additional 122 billion baht for next fiscal year's budget, but Senate and royal approval are still awaited.

Set for a full launch in two months, the program aims to transfer 10,000 baht credits to users via a smartphone app, spendable locally within six months. The Finance Ministry projects economic growth of 2.7% this year, buoyed by tourism and exports, while the handout is expected to add 1.2 to 1.8 percentage points to next year's growth. The scheme specifically targets stimulating regional economic activity, with about 45 million expected to enroll.

(With inputs from agencies.)