Dharani Seju, Vice President for Payment Systems Supervision and Financial Services User Protection Bank of Thailand (BoT)announced that it will launch a new initiative to test programmable payment systems under an enhanced regulatory sandbox framework.
This initiative responds to the rapid and complex development of financial innovations such as distributed ledger technology (DLT) and smart contracts that are transforming financial services.
The BoT recognises the potential of these technologies to reduce service costs and better meet the needs of financial services users.
The new project will test programmable payments, which use technology to automatically set trade terms for goods and services and offer a range of applications with appropriate risk management processes.
The testing will take place within an enhanced regulatory sandbox, expanding the scope of the current sandbox to include financial innovations that have not yet been approved by the BoT.
The project will work with the Securities and Exchange Commission, the Insurance Commission, and the Treasury Department’s Fiscal Policy Office to assess the benefits and risks of these innovations and develop appropriate supervisory policies for the future.
The BoT is inviting financial service providers and other interested parties to participate in the programmable payments test.
The application period runs from June 13, 2024 to September 13, 2024.
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