Thailand UPI plan officially launched, system crashed on first day of registration
CryptoCity previously reported that the Thai government’s much-anticipated policy, a plan to issue 10,000 baht (approximately US$282) to most citizens, faced an early setback on Thursday (8/1). Millions of people flooded the registration system that day, causing it to crash. By early afternoon, 10.5 million people had applied to join the program, but millions were still unable to access the registration portal, with many complaining about not receiving the SMS verification code needed to complete their registration.
The plan aims to distribute 500 billion baht (about $14 billion) to people through "digital wallets" to stimulate Thailand's economy, which is struggling due to high household debt and weak consumption. However, the plan has been delayed due to uncertainty about funding. Despite the initial problems, Thai Prime Minister Srettha Thavisin said that problems on the first day are normal and the government is doing its best to solve them.
Challenges and Criticisms of the UPI Scheme
Although the Thai government has high hopes for the plan, criticism continues. Many economists and former central bankers believe the plan is short-sighted and carries fiscal risks. Critics point out that such large-scale fiscal spending may increase the financial burden on the country and question its long-term effectiveness. Opponents worry that such temporary stimulus measures cannot truly solve the deep-seated structural problems of Thailand's economy.
The House of Commons on Wednesday (8/2) night approved an additional 122 billion baht for fiscal year 2024 to help fund the digital wallet initiative, but it still needs approval from the Upper House and the royal family. The program, expected to be officially launched within two months, will transfer 10,000 baht of credit to users through a smartphone app, with the funds to be used locally within six months.
Economic outlook and expert opinions
Thailand's Finance Ministry expects economic growth this year to be 2.7%, mainly benefiting from tourism and exports. The government believes that the payment plan can contribute 1.2 to 1.8 percentage points to economic growth next year. Saita said the goal of the policy is to promote regional economic activity and avoid economic growth being too concentrated in urban areas.
About half of Thailand's population lives in urban areas, according to World Bank data. The government expects 45 million people to take part in the scheme, out of 50 million who are eligible. Thais who earn more than 840,000 baht a year or have more than 500,000 baht (about $14,077) in the bank are not eligible to participate.
While the plan has gained some support, critics say it is a short-sighted economic strategy that could pose long-term risks to state finances. Economists emphasize that a real economic recovery requires more stable and sustained policies, rather than relying solely on temporary fiscal stimulus. When facing these challenges, the Thai government needs to weigh carefully to ensure that the implementation of policies will not have a negative impact on the country's financial stability.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
