Thursday, May 23, 2024

Bank of Thailand pushes for blockchain tech use in the financial sector

Bank of Thailand (BOT), the central bank of Thailand, has published guidelines regulating and promoting the use of blockchain, mainly in finances. Siritida Panomwon Na Ayudhya, the assistant governor of the financial technology group and payment systems policy at the BOT, released the guidelines. These guidelines laid down the principles for companies that provide financial services on how to adopt blockchain technology.

The BOT cited blockchain technology’s robust potential in increasing interoperability, transparency, and efficiency across industries. The bank aims to promote financial innovation while overseeing risks rigorously. Their ultimate hope is that the regulatory framework is able to increase the confidence of people in financial services that incorporate blockchain.

This is not the first time that the BOT has made moves related to blockchain. In 2020, they released the infrastructure of government savings bonds on blockchain for improving efficiency and investment experience. About a month later, they also published guidelines on using blockchain chain technology just like the recently issued ones.

However, even though they have accepted the tech, they are not promoting the usage of cryptocurrency as the payment mode. They will be monitoring the digital assets advancements and warned that all the parties involved in the crypto transactions will be facing the risk of price volatility, cyber theft, and money laundering. Furthermore, the bank will be cooperating with the Securities & Exchange Commission of Thailand to make sure that there is no risk to the economic and financial system of the country or the general public. Also, they are exploring a digital currency and will be releasing a pilot in 2022.

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