The Bank of Thailand is currently reviewing blockchain applications for cross-border payments, supply chain financing, and document authentication, Governor Dr. Veerathai Santiprabhob said recently.

Speaking at the Bloomberg ASEAN Business Summit, Santiprabhob underscored the central bank’s support for financial innovation in the wake of recent technological advancements.

The BoT established a regulatory sandbox for financial institutions and fintech firms to test new technologies and operating standards in a safe environment before officially launching the products and services. Santiprabhob said:

“Technologies under reviewed 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.”

Earlier in March, the BoT announced that fourteen domestic banks are teaming up to develop a blockchain-based shared trade finance platform.

Santiprabhob further noted the importance of cyber resilience and cyber security with the world increasingly going digital. To that end, he said:

“Adoption of modern technologies like biometrics and blockchains can help safeguard financial information and reduce the number and magnitude of fraudulent activities. In our part, last year the Bank of Thailand in collaboration with 15 Thai banks and the Electronic Transactions Development Agency, set up the Thailand Banking Sector Computer Emergency Response Team (TB-CERT) as a platform for banks and regulators to share information on cyber incidents and build standards and capacity for IT-personnel to handle new threats.”

Last month, the BoT announced a new project aimed at developing central bank digital currency (CBDC) to facilitate interbank settlement.