The BOT is promoting responsible innovation and has started a testing project for Programmable Payment under an Enhanced Regulatory Sandbox to evaluate potential benefits and risks.
- The Bank of Thailand is embracing financial innovation, including Distributed Ledger Technology and Smart Contracts, to reduce operational costs and meet the needs of financial service users.
- The BOT is implementing a testing project for Programmable Payment, aiming to demonstrate the potential of technology in various financial services while ensuring appropriate risk management.
- The “Enhanced Regulatory Sandbox” will allow the BOT to evaluate and establish supervisory policies for financial innovations in collaboration with other regulatory bodies.
Ms. Daranee Saeju, Assistant Governor of Payment Systems Policy and Financial Consumer Protection Group at the Bank of Thailand (BOT), has stated that the current development of financial innovation is occurring rapidly and with increasing complexity.
Technologies like Distributed Ledger Technology and Smart Contracts are being used to create new financial service innovations. The BOT acknowledges the potential and benefits of these technologies in reducing operational costs for financial service providers and meeting the needs of financial service users.
The BOT has a policy of responsible innovation, promoting the development of innovations in a manner that is accountable to the economic and financial system. Therefore, the BOT has initiated a testing project for Programmable Payment, which is an automated transaction with predefined conditions for the payment of goods and services. This project will demonstrate the potential for applying technology to a wide variety of financial services, accompanied by appropriate risk management processes.
This testing will be conducted under the “Enhanced Regulatory Sandbox”, which expands the scope of the current Regulatory Sandbox Framework to include financial innovations not yet authorized by the BOT. The BOT will work in collaboration with the Securities and Exchange Commission, the Office of Insurance Commission, and the Fiscal Policy Office, Ministry of Finance, to evaluate the benefits and risks of financial innovations and to establish potential and suitable supervisory policies.
Source : https://www.bot.or.th/en/news-and-media/news/news-20240611-2.html
