{"id":1207,"date":"2020-10-14T09:00:21","date_gmt":"2020-10-14T02:00:21","guid":{"rendered":"https:\/\/bitesizebkk.co\/?p=1207"},"modified":"2020-10-13T18:48:34","modified_gmt":"2020-10-13T11:48:34","slug":"bitesize-finance-thailand-digital-assets-roadmap","status":"publish","type":"post","link":"https:\/\/bitesizebkk.co\/bitesize-finance-thailand-digital-assets-roadmap\/","title":{"rendered":"Bitesize Finance: Thailand\u2019s Blockchain & Digital Assets Roadmap"},"content":{"rendered":"

Thailand has been quite the early adopter of digital asset regulation and various blockchain initiatives. Led by the Bank of Thailand\u2019s progressive initiatives, it paved the way for homegrown companies and bank-led projects to be born.\u00a0<\/span><\/p>\n

Whether the initiatives lead to wide adoption or success in its respective sectors, is another story.<\/span><\/p>\n

Thailand introduced in 2018 <\/span>a full set of laws and regulations<\/span><\/a> for transactions involving cryptocurrencies and crypto assets, bravely setting up the stage as an early adopter. This is relevant for Bitcoin, altcoins and all types of digital tokens relevant to the Thai market.\u00a0<\/span><\/p>\n

With that, Thailand opened access to the digital assets market with very clearly defined guidelines and sandboxes. The government body published two Royal Decrees, alongside regulations by the Thai Securities and Exchange Commission SEC, with the Bank of Thailand. Under the finalized framework, digital businesses that deal with crypto assets and blockchain can be set up.\u00a0<\/span><\/p>\n

In 2019, an <\/span>electronic letter of guarantee platform<\/span><\/a> and network participated in by 22 Thai banks and 15 companies in Thailand successfully went live and currently handles approximately US$300M in guarantee letters.<\/span><\/p>\n

Fast forward to 2020, the Bank of Thailand remains active in the issuance and trials of many digital assets initiatives. Innovation can only happen in this space if the regulations and framework allows.\u00a0<\/span><\/p>\n

In the near future, we can probably expect to see <\/span>regulatory guidance on the <\/span>tokenization of traditional assets<\/span><\/a>, such as gold, bonds to even real estate.\u00a0<\/span><\/p><\/blockquote>\n

In this article, Bitesize Finance will take you through the various trials and errors of Thailand\u2019s blockchain and digital assets roadmap, in which we have seen success mixed in with failure and non-starters. Let\u2019s get to it.\u00a0<\/span><\/p>\n

Role of BOT and SET<\/b><\/h2>\n

Just as we mentioned above, progress and innovation in this space cannot happen without the regulations set by governing bodies in Thailand. Here, the architects of the infrastructure are the Bank of Thailand (BoT) and Stock Exchange of Thailand (SET).\u00a0<\/span><\/p>\n

At the beginning of this year, the SET<\/span> announced their roadmap<\/span><\/a> for their digital asset platform. Now, fast forward to October, it announced a partnership with Kasikorn Bank\u2019s technology unit, KBTG to build an end-to-end digital assets platform, which should be completed in 2021.\u00a0<\/span><\/p>\n

Within the SET\u2019s roadmap for 2020 and ahead, the priority on the list is arguably the <\/span>fundraising use case. <\/span><\/i>This refers to the ability to issue securities on its platform. In the future, the digital platform should be able to <\/span>support various products<\/span><\/a>, from digital bonds to investment tokens.\u00a0<\/span><\/p>\n

Another main focus is <\/span>Digital Asset as a Service<\/span><\/a>. If successful, this would allow companies and businesses to leverage digital assets quickly, without having to spend money<\/span> and knowledge building it themselves. This ranges from donation platforms to mutual fund registrar.\u00a0<\/span><\/p>\n

Back in December 2019, the <\/span>SET announced a collaboration<\/span><\/a> with Cambridge University (Cambridge Center of Alternative Finance) & Blocksize Capital to announce the development of Distributed Ledger Technology (DLT). <\/span>Blockchain<\/span><\/a> is one technology of DLT, but we can use the terms separately.\u00a0<\/span><\/p>\n

\"\"<\/p>\n

DLT would drastically reduce transaction cost, increase efficiency and improve compliance steps, just as blockchain would. <\/span><\/p>\n

Think about the efficiency it would create if all parties would have access to secured information, which would also lead to secured and efficient workflow and reporting.<\/span><\/p><\/blockquote>\n

However, these things always sound great in theory. Applying it is a whole different story.\u00a0<\/span><\/p>\n

In announcing the collaboration, the SET focused on <\/span>four key use cases<\/span><\/a> for Thailand\u2019s capital markets.\u00a0<\/span><\/p>\n

\"\"<\/p>\n

Note that a lot of these concepts are still in ideation phase.<\/p>\n

What\u2019s interesting then, is that SET is willing to disrupt itself by setting its position as the pioneer in all things digital assets in Thailand.\u00a0<\/span><\/p><\/blockquote>\n

Let\u2019s briefly go through two potential use cases:<\/b><\/p>\n