The revolution brought by Blockchain technology has spread across the globe like wildfire today. Many countries today are now quick to adopt this technology to improve their banking system. The Bank of Thailand has joined the list of countries seeking to integrate Blockchain technology fully into their payments system; by allowing banks to conduct virtual banking effective from 2025. What effects will this have on the crypto market at large? Will this make more people buy cryptocurrency in the future? Well, this work has done justice to these important questions.
What is Virtual banking?
Virtual banking refers to the use of digital and online technology to provide banking services to customers. This can include online banking, mobile banking, and other digital channels such as social media and messaging apps. Some virtual banks may have no physical branches, or they may have a limited number of physical locations but focus primarily on digital channels for customer interactions.
Bank of Thailand aims to move to Virtual Banking by 2025
The Bank of Thailand (BoT) has announced plans to move towards virtual banking by 2025. Here, its central bank revealed that it will begin accepting applications for virtual bank licenses later this year, to grant the first licenses by 2025.
Virtual banking also known as digital banking allows customers to access financial services through digital channels such as mobile apps and websites. This shift towards virtual banking is expected to increase financial inclusion and improve access to banking services for many Thai citizens.
BoT Governor Sethaput Suthiwart-Narueput stated that the central bank is committed to promoting digital innovation in the banking sector. He added that virtual banking will “provide more choices for customers and increase competition among banks.”
The move towards virtual banking is in line with the Thai government’s broader digital strategy, which aims to promote the use of digital technology across various sectors of the economy. The central bank has also announced plans to launch a digital currency pilot program in collaboration with the private sector.
What effects will the move into Virtual Banking have on Crypto?
The move towards virtual banking is expected to increase the accessibility and convenience of banking services for consumers and businesses, which could in turn lead to an increase in the adoption of cryptocurrency as a viable alternative to traditional fiat currency.
Another important benefit of virtual banking in the crypto industry is the potential for increased security. Virtual banks will need to utilize advanced technologies such as blockchain to secure transactions and protect customer information, which could make it a more attractive option for those who are concerned about the security of traditional banking systems.
Additionally, virtual banks may also be able to offer lower fees and faster transaction times compared to traditional banks, which could further boost the appeal of crypto.
The introduction of a virtual banking system could further support the adoption of a wider range of digital assets, especially as virtual banks may be open to supporting a variety of different cryptocurrencies and blockchain-based assets, which could provide more options for investors and traders. This could also lead to greater liquidity in the crypto market, as more investors and traders may be willing to enter the market if they have access to a wider range of assets.
Above all, the adoption of a virtual banking system could also speed up the process of cryptocurrency regulation across the globe. This will offer users more protection for their digital assets and increase the adoption rate for crypto.
Source : https://filmdaily.co/tech/thailand-virtual-bank/