The institution made the announcement that the Bank of Thailand intends to initiate the first transaction in the country through virtual banking.

According to the findings of an investigation carried out by Bloomberg, financial institutions would be in a position to provide their services by the year 2025.

In the consultation paper on the virtual bank licensing framework that the central bank distributed, it was said that software that would make it possible for virtual banks to serve as financial service providers will be available later in 2023.

This move is intended to encourage higher levels of competition and promote economic growth in Thailand.

By 2024, the Bank of Thailand will have made three different licenses available to any company that might be interested in obtaining one. Based on the results of the investigation, at least 10 different organizations have shown interest in being issued licenses.

Both traditional commercial banks and online banks, as long as they operate within the parameters of the licensing system, will be subject to the same rules and degrees of supervision.

In addition, those who are qualified to apply and are interested in doing so must meet a number of conditions.

During the first few years of their existence, virtual banks will reportedly have to comply with a series of regulations imposed by the central bank. During this time, there will be a greater 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 announcing its goal to improve investor safety by setting stricter restrictions on cryptocurrencies.

The use of blockchain technology is expected to benefit from a recently signed technical cooperation agreement between Thailand and Hungary. This comes at a time when there is a rapidly growing demand in Thailand for mobile payments, e-commerce and cryptocurrency transactions.

In the year 2022, the country saw a variety of cryptocurrency-related developments, such as plans to test a central bank digital currency for approximately 10,000 users.