FinTech Disruption Wave May Affect Thai Banks if not Adapted Quickly

  • The industry leaders are worried that ‘FinTech Disruption Wave’ may have a negative impact on Thailand’s banking industry in the coming future.
  • Mr. Jirayus Subsrisopa has expressed his concerns regarding the increasing growth of cryptocurrencies which will hamper the bank industry.
  • The Bank of Agriculture and Agricultural Co-operatives of Thailand have scheduled a house auction and the bid started at a low 35000 baht.

The FinTech Disruption Wave’ is seeing huge adaption in Thailand and the industry leaders are worried that this may have a negative impact on Thailand’s banking industry in the coming future. Crypto assets as modern payments seem very attractive as they are easier to use and faster compared to conventional banking methods. Moreover, Blockchain, Big Data, AI (Artificial Intelligence), and peer to peer lending technologies have revolutionized the process of transactions. 

How has FinTech Disruption Waves Affected the Bank Industry? 

The Bank of Agriculture and Agricultural Co-operatives of Thailand have scheduled a house auction and the bid started at a low 35000 baht. Thailand’s Treasury had to sell bonds worth 50 million that were almost two generations old. In order to incentivise the investors, an interest of 2.2% was also provided. 

The CEO of Bitkub Capital Group Holdings Investor and Digital Asset Specialist, Mr. Jirayus Subsrisopa has expressed his concerns regarding the increasing growth of cryptocurrencies which will hamper the bank industry. He said that in the next few years Thailand’s finance industry will peak with Fintech Disruption waves. And if the financial institutions in Thailand do not speed up the adapting process then they might be greatly affected. 

Efforts of BOT in Supporting Digital Currencies

Jirayus has also elaborated the efforts of the Bank of Thailand in developing a system that will support the use of digital currencies. The Bank of Thailand has launched the Inthanon project along with 8 different financial institutions and R3 that will experiment the viability of blockchain technology in its payment systems. 

The Office of the Comptroller of the Currency (OCC) of the United States had allowed the banks to explore the feasibility of a digital dollar and repositories involving crypto assets. Simultaneously, Thailand’s neighbour China has also began pilot tests on digital yuan. The Bank of Thailand is also working on designing and chipping in ideas for the trials of the digital baht. In collaboration with SCC, BOT aims at piloting the first digital payment in the supply chain. 

He further added that Thai people are generally very active on social media. Because of which they are well acquainted with Facebook’s cryptocurrency, Libra and the digital yuan. Hence it is only about time that these assets are officially introduced in the country.

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