Bank of Thailand chief challenges PM on source of funds for digital wallet scheme

In his comprehensive 30-minute address after the meeting, Srettha provided the project’s policy details, such as reasons, necessity, criteria, conditions and the key issue of the “funding source”. The plan is to drive the project with a loan of up to 500 billion baht, potentially through a royal decree or a loan authorisation law.

However, before the scheduled media briefing at 2 pm, an intense debate ensued during the committee meeting that commenced at 11.15 am. Central to the discussion was the legislation for borrowing, seen as a last-resort measure for securing the project’s funds.

Bank of Thailand (BOT) governor, Sethaput Suthiwartnarueput, was the first to voice dissent, raising concerns about the borrowing legislation. He said clarity was required on potential contradictions with the 1958 Currency Act, such as providing a clear source of funds and corresponding assets to support them.

The BOT also cautioned that an enactment of a loan authorisation law for up to 500 billion baht may heighten inflation risks in the upcoming year, and advocated caution and continuous vigilance.

Simultaneously, the secretary-general of the Office of the Council of State highlighted the significance of thorough consultation and consensus before a loan authorisation law is drafted. The official also pushed for extensive deliberations and study of diverse opinions to prevent potential problems in the future.
A source present at the meeting said there were many disagreements over various conditions, especially related to the committee’s expedited decision-making process. The swift consideration and decision of several agenda items also raised worries about the potential lack of comprehensive reasoning, leading to disagreements within the committee.
Meanwhile, the BoT governor said there was insufficient reasoning behind the information presented, leading to the BoT abstaining from participating in the decision-making process.
Eventually, Srettha took a final decision on new conditions being applied to the 10,000-baht digital wallet. He said financial support to Thai citizens aged 16 and above will only be extended to those earning less than 70,000 baht per month and having less than 500,000 baht in their bank accounts. This will potentially benefit some 50 million individuals.