Siam Commercial Bank (SCB), a Thai bank, explained that it sees blockchain and decentralization as the future of financial services and plans to invest in the community to ensure its rapid growth. Cryptocurrencies are becoming increasingly attractive to institutions, as evidenced by the ongoing adoption of cryptocurrencies by a large number of mainstream firms. The most popular coin in the industry, Bitcoin, is noticed the most by institutional buyers.
As its value skyrocketed, bitcoin continually attracted mainstream attention. During this time, altcoins gained loyal users, as well. There has been some diverted attention to Decentralized Finance and Ethereum, even though Bitcoin still tops the list for wealthy buyers.
Siam Commercial Bank to explore DeFi
Siam Commercial Bank has revealed that it plans to focus on a Decentralized Finance program as it explores blockchain technology. As one of Thailand’s oldest banks, the bank is interested in changing the traditional narrative of finance. Decentralized Finance, or DeFi, uses blockchain technology to provide users with financial services without the use of intermediaries.
One of the most sought-after technologies in the world today is this technology, which gives users control over their assets and money. Although many banks balk at the idea, Siam views digital assets from a different perspective.
DeFi and blockchain technology would be researched by the bank through investments in the technology. Even though Thailand’s current stance is to make more laws to regulate DeFI, Siam is committed to developing the new technology.
Stringent regulations enacted by governments and regulators around the world can significantly affect the growth of the industry. New policies can also prevent developers from fully exploring the technology’s potential. Decentralized financial systems are the aim, but developers are hoping that they will be combined with traditional banking systems.
Regulatory DeFi is desired by institutions
The mainstream business community, institutional investors, and those seeking DeFi believe that an integrated system of regulated banking and DeFi would be beneficial. As a result of this new development, there will be rules guiding the technology, which could increase reach, efficiency, cost reductions, and other benefits.
To fund the project, the commercial bank raised $50 million as a seed fund. By improving the institution’s vision of financial technology, the fund encouraged the institution to develop the growing initiative. Mukkaya Tai Panich, CEO of Siam Commercial Bank, says the business is exploring decentralized financial technology as one of the emerging fintech industries.
It has begun working on blockchain, and the institution is intrigued by it, according to its chief venture and investment officer. According to him, the financial system would be automated, meaning that humans would interact with computers to settle transactions. Despite the ability of this initiative to disrupt the current financial system, Panich confirmed SCB wants to take advantage of it. Siam allocated $110 million from its Venture Capital Fund to blockchain and DeFi.