Thailand pauses digital wallet cash handout as US tariffs bite

Thailand kicked off a $13 billion stimulus handout via digital wallets late last year, but has paused the contentious scheme.

Thai officials pointed to the impact of U.S. tariffs as the government reconsiders the next phase of the cash handout.

“The digital wallet programme was not canceled but postponed until economic conditions improve, when such stimulus would be most effective,” said Shinawatra, as reported by Vietnam Plus.

Deputy prime minister and finance minister Pichai Chunhavajira commented, “In response to the evolving global situation, we are collecting input from various government agencies and reassessing which stimulus measure should proceed and which may need to be postponed or revised.”

The 450 billion baht ($13.8 billion) digital wallet stimulus was aimed at boosting the country’s economy as 45 million citizens would receive the free money and spend it locally. But Shinawatra has said the project has already supported vulnerable groups and the elderly in the first two rounds of distribution, with phase 3 now postponed.

The government is now reviewing the best use of funds with national infrastructure projects being considered.

Registration for the digital wallet, to receive the handout, had been conducted via the Thang Rath app. A government app, Thang Rath faced some problems with some users having to make several attempts for the face biometrics matching process to confirm their identities.

The 450 billion baht scheme faced criticism from economists and opposition parties who questioned the long-term impact of the stimulus, calling it a “fiscal burden,” and that the cash handouts are not the same thing as the digital wallet that was pledged.

Now, as the scheme is postponed, the Thai leadership faces criticism for de-prioritizing the digital wallet and for “devaluing its own flagship policy.”

Article Topics

biometrics  |  digital ID  |  digital wallets  |  financial inclusion  |  government services  |  social protection  |  ThaID  |  Thailand