Bank of Thailand unveils banking initiatives

The Bank of Thailand (BOT) has introduced a new set of banking initiatives designed to position the financial sector for a sustainable digital economy, the country’s central bank announced on Friday (March 25).

The BOT proposals included provisions for open and virtual banking that would be implemented by the end of the year. The recommendations were the subject of public hearings in February.

“Most comments agreed with the guiding principle of striking the right balance between promoting innovation and managing risk in the transition to the digital economy and sustainable growth,” said bot.

The three main policy directions include harnessing technology and data to drive innovation through competition, open infrastructure and data; managing the transition to the digital economy and sustainability; and the shift from stability to resilience in terms of the supervisory framework and the protection of the financial system against risks.

Furthermore, most comments highlighted the significant challenge of implementing such policies to achieve concrete and positive results.

Specifically, BOT said it should provide clear guidelines on the three directions, especially to create a level playing field that encourages competition and innovation for existing financial institutions and startups. The central bank highlighted issues such as permission to launch a bank with digital banking services or a virtual bank.

The BOT said it would incorporate comments and recommendations to improve policy guidelines for repositioning Thailand’s financial sector with relevant stakeholders, the bank wrote.

One thing is clear. Thailand is not ready for cryptocurrencies to pay for goods and services, noting that tokens could pose a threat.

Also Read: Thailand Bans the Use of Cryptocurrency

This week, the Securities and Exchange Commission, the agency that oversees the Southeast Asian nation’s capital markets, said it discussed the risks and benefits of digital assets with the BOT.

Both determined that it was necessary to regulate the use of digital assets as payment for goods and services, as this could impact the stability of the financial system and the economy as a whole.

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