Central bank mulls common sandbox for NDID

Central bank mulls common sandbox for NDID

BoT in talks with other regulators

The Bank of Thailand plans to work with other regulators to set up a co-regulatory sandbox to test digital identity verification through the National Digital ID Platform (NDID) in the second semester as part of efforts to further stimulate the digital economy.

The central bank is in talks with the Electronic Transactions Development Agency (ETDA) and other regulators to participate in digital identity authentication through facial recognition on the NDID platform and expand services NDID and NDID use cases for the second phase covering enterprise NDID. .

The co-regulatory sandbox under NDID’s second phase is expected to be in place in the second half of this year, said Siritida Panomwon Na Ayudhya, the central bank’s deputy governor for Payments System Policy and Policy Group. financial technology.

The first phase of the NDID sandboxes only covers individual NDID users and each of them belonged to the Bank of Thailand and ETDA.

There are 94 organizations involved on the NDID platform and 5.1 million registered customers with NDID.

The key use case for the NDID service is opening new digital accounts for financial services and the use cases have been expanded.

In February, bank deposit account openings through digital identity verification on the NDID platform stood at 750,000 accounts.

There were also 8.1 million NDID use case transactions for personal credit checks with the National Credit Bureau to apply for loans.

The central bank has set up regulatory sandboxes to test all new innovative financial products and services from 2016, covering standardized QR code payments, biometrics, blockchain and P2P lending platform.

There are many related organizations testing in the regulatory sandboxes and 38 organizations have already left them.

Ms. Siritida said the central bank expects another 10 banks, which are testing in the blockchain sandbox in the use case of electronic letters of guarantee, to come out of the sandboxes in June.

In addition, three trading operators are testing the P2P lending platform after one of them came out and received a trading license from the Ministry of Finance.

The P2P lending provider has approved loans worth 57 million baht for around 800 loan contracts.

In addition to regulatory sandboxes, the central bank also allows financial institutions to create their own sandbox to test their organizations’ unique innovations.

Ms Siritida said the central bank would continue to implement new guidelines for innovative financial products and services and set up new regulatory sandboxes to test related digital technologies.

This decision would be in line with new technologies and the development of innovative financial services also covering virtual banks and digital assets.

The central bank must conclude the implementation and regulation of new virtual banking and digital asset activities before implementing guidelines and regulatory sandboxes to test these activities, she said.

Central bank regulatory sandboxes testing innovative financial products would give Thais access to financial services.

Digital financial services would provide more convenience, speed, security and reduce operating and financial costs.

It would also help to develop the whole digital banking and digital economy of the country in the longer term.

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