Daranee Saeju, Assistant Governor of Payment System Supervision and Financial Service User Protection at the Bank of Thailand (BoT), announced the launch of a new initiative to test programmable payment systems under the Enhanced Regulatory Sandbox framework.

This initiative responds to the rapid and complex development of financial innovations, such as distributed ledger technology (DLT) and smart contracts, which are transforming financial services.

The BoT recognises the potential of these technologies to reduce service costs and better meet the needs of financial service users.

The new project will test programmable payments, which use technology to automatically set transaction conditions for goods and services, offering a variety of applications with proper risk management processes.

The testing will take place within the Enhanced Regulatory Sandbox, expanding the current sandbox’s scope to include financial innovations not yet approved by the BoT.

This project involves collaboration with the Securities and Exchange Commission, the Insurance Commission, and the Fiscal Policy Office of the Ministry of Finance to evaluate the benefits and risks of these innovations and to develop appropriate supervisory policies for the future.

The BoT invites financial service providers and other interested companies to participate in this programmable payment test.

Applications are open from 13 June 13 to 13 September 2024.

Featured image credit: Edited from Freepik