Thailand’s central bank yesterday published guidelines to regulate and promote the use of blockchain technology in the financial sector.
Fast facts
- Released by Siritida Panomwon Na Ayudhya, assistant governor of the payment systems policy and financial technology group at the Bank of Thailand, the guidelines provides principles for blockchain technology adoption by financial services providers.
- Citing blockchain’s “robust potentials in providing increased efficiency, transparency and interoperability across industries,” the Bank of Thailand said it aims to promote financial innovation while rigorously overseeing risks. Ultimately, it hopes that the regulatory framework can “increase people’s confidence” in using blockchain-incorporated financial services.
- It is not the first time the bank has made moves on blockchain. Late last year, it launched government savings bond infrastructure on blockchain to improve investment experience and efficiency. A month later, it published guidelines on blockchain technology similar to the newly issued ones.
- Blockchain is widely applied in financial activities, the bank said, including for transaction verification, international remittances, electronic letters of guarantee and financial infrastructure development projects.
- In contrast with the bank’s embrace of blockchain, it declared earlier this month that it does not support the use of cryptocurrency as a means of payment.