"If it was CBDC before, now the country is competing for virtual banks."
In order to offer services by 2025 and further accelerate Thailand's economic growth, the Bank of Thailand for the first time allows virtual banks to operate in its country.
Following that, the central bank has approved the "Consultation Paper on Virtual Bank Licensing Framework" so that virtual banks can provide financial services as quickly as possible.
Explained in more detail, the Bank of Thailand has issued three different licenses for companies interested in establishing a virtual bank and there are 10 parties wishing to obtain the license.
However, qualified applicants must meet certain requirements following the regulation and supervision of virtual banks similar to the regulation of traditional commercial banks under the licensing framework.
In addition, newly operating virtual banks will be strictly monitored to prevent systemic financial risks or fraud.
According to the Securities and Exchange Commission (SEC) of Thailand, it will prioritize protecting investors through tightening the rules of cryptocurrency and digital asset advertising based on established guidelines.
On the other hand, Thailand's purpose of signing an agreement with Hungary is to support the use of blockchain technology for mobile payments, e-commerce and crypto and also plans to launch a central bank digital currency (CBDC).
