The announcement that the Bank of Thailand intends to initiate the very first transaction in the country via virtual banking was made by the institution.
According to the findings of a research conducted by Bloomberg, financial institutions would be able to provide their services by the year 2025.
In the Consultation Paper on Virtual Bank Licensing Framework that was distributed by the central bank, it was said that software that would make it possible for virtual banks to serve as providers of financial services will be accessible later on in the year 2023.
This move is intended to encourage greater levels of competition and to promote economic growth in Thailand.
By the year 2024, the Bank of Thailand will have made three different licenses accessible to any businesses that may be interested in obtaining one. Relying on the findings of the research, at least 10 different organizations have shown an interest in having licenses issued to them.
Both traditional commercial banks and online banks will, so long as they operate within the parameters of the licensing system, be subject to the same rules and degrees of supervision.
In addition, those individuals who are qualified to apply and are interested in doing so will be required to meet a number of conditions.
For the first few years of its existence, virtual banks will reportedly have to comply with a number of regulations imposed by the central bank. During this time, there will be a heightened emphasis on surveillance activities in an effort to identify and neutralize any potential risks to the global financial system.
The Securities and Exchange Commission of Thailand recently made a statement in which it announced its goal to enhance the safety of investors by establishing stronger restrictions for cryptocurrencies.
The use of blockchain technology is expected to benefit from a recent technical cooperation agreement that was recently inked between Thailand and Hungary. This comes at a time when there is a fast expanding demand in Thailand for mobile payments, e-commerce, and cryptocurrency transactions.
In the year 2022, the country saw a range of developments relating to cryptocurrencies, such as plans to pilot a central bank digital currency for about 10,000 users.