Thailand is bound to see a sweeping adoption of blockchain technology in a number of areas including finance by the year 2018, according to a report in regional English daily Bangkok Post .
The news daily cites a blockchain specialist who sees businesses in Thailand adopting blockchain technology by the year 2018. Beyond its core features in transferring value with transparency and security while maintaining trust, the inexpensive ease in which it can be implemented will encourage businesses to switch over, opines Bhume Bhumiratana, a blockchain tech expert.
The cost of development will also be smaller compared to the maintenance of existing traditional systems infrastructure, according to the expert.
The tide of disruption brought forward by Financial technology will also mean that policymakers and regulators are required to quickly understand and then implement new regulations to foster a flourishing sector.
For instance, the Thailand Fintech Association’s chairman recently issued a public call urging the government to introduce regulations in the country to keep abreast with sweeping technological changes in an effort to encourage and support the local Fintech space.
As things stand, the Bank of Thailand – the country’s central bank – does not oversee or enforce any regulations for cross-border trade in the financial services sector. The lack of regulation has left Thailand’s doors open to the likes of Chinese giant Alibaba to gain a presence in over 9,000 7-Eleven outlets in the country.
Outdated laws will need to be revamped to catch up to new innovations like blockchain technology, according to Dhiraphol Suwanprateep, partner at law firm Baker McKenzie Thailand.
In quotes reported by the publication, he stated:
Policymakers need to understand this technology and consider relevant regulations before adopting it.
Intriguingly, the report also reveals that the Electronic Transactions Development Agency, a Thai legal authority in the payments space, is amending the existing Electronic Transaction Act from 2001 to include the use of smart contracts via blockchain technology adoption.
Bangkok has notably seen a few blockchain projects take shape in recent times. A successful remittance pilot saw over 100 migrant workers send money to their homeland, Myanmar, using the Ethereum blockchain.
A partnership between Thai lender Kasikornbank and Chinese fintech firm IBS established a baht-yuan cross-country remittance platform for the corridor.
Featured image of Bangkok from Shutterstock.