Speaking at the Bloomberg ASEAN Business Summit in Bangkok this past week, Dr. Veerathai Santiprabhob, Governor of the Bank of Thailand, delivered a broad based speech that discussed the opportunities provided by Fintech and blockchain specifically.
Dr. Santiprabhob said their Fintech regulatory Sandbox;
“… serves as a platform for financial institutions and Fintech firms to test new technologies and operating standards in a safe environment before the products and services are launched to the general public. Technologies under review include biometrics for electronic know-your-customers, machine learning for alternative credit scoring models, and blockchain applications for cross-border payments, supply chain financing, and document authentication.”
“Regional financial connectivity” is being buttressed by blockchain – helping to improve financial services and inclusivity.
Dr. Santiprabhob said the Bank of Thailand is also undergoing “regulatory reform.” He referenced outdated rules and regulations that inhibit competition and innovation.
“We started with foreign exchange regulations last year and are now reviewing banking regulations to improve digital banking environment and SME financing.”
The Governor said the Bank is committed to supporting the adoption of Fintech as well as promoting inclusivity and productivity.
“…the Bank of Thailand has the duty not only to preserve and maintain economic and financial stability, but also to develop our financial system so that it can effectively unlock Thailand’s economic potential, uplift productivity, and bring about more inclusive growth for the future,” stated Dr. Santiprabhob
Dr. Santiprabhob is part of a growing number of central bankers that are recognizing the profound need to embrace change and Fintech innovation. Central banks must not look to the past for safety but chart a course that empowers Fintechs to provide better, less expensive services to a wider population. Empowering competition is key to this mission.
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