|Jun 13, 2018 12:26 PM||By: Ben Noble | 6775 Views|
The Governor of the Bank of Thailand, Dr. Veerathai Santiprabhob, stated that Thailand plans to adopt blockchain tech to improve existing banking applications. The technology is growing momentum in Asia. Governor started the publically at the Nomura Investment Forum in Singapore.
In his keynote address about the Thai Economy, the Governor stated –
“We are working closely with the financial industry to apply [blockchain technology] to different banking applications. The Thailand Blockchain Community Initiative was officially declared at the Bangkok FinTech fair in March of this year.”
14 Thai banks, 7 leading businesses, and state-owned companies are part of the initiative to use blockchain technology in financial services. The action will begin with a pilot project to provide blockchain-based letters of guarantee. The Governor expects to make the project operational in the 2nd half of 2018.
Incidentally, Thailand is not the only South East Asian country to adopt blockchain technology for banking. The ASEAN Post stated that the Bank of Indonesia declared in January of 2018 that they would launch their cryptocurrency based on blockchain technology.
Singapore and the Philippines are also examining blockchain technology to render banking cheaper and more efficient.
Thai Govt. is planning to leverage blockchain technology in the financial sector, concentrating on the supply chain finance. In supply chain finance, blockchain technology can help increase authentication efficiency.
The Government of Thailand is developing a script-less bond issuance to assist bond allocation for investors in retail from 15-20 days. This project will bring better flexibility to bond issuers. The script-less bond’s proof-of-concept is almost complete.
A new approach to interbank settlements is also being developed by the Bank of Thailand (BoT). BoT is toying with an idea to utilize commercial Central bank digital currency (CBDC) to explore applications and implications for operation. The aim is to develop a faster and cost-efficient transfer and validation system by removing third parties that exist in such services today.
The simple acceptance of blockchain technology by Thailand does not mean that they are shifting their stance on cryptocurrencies. All businesses dealing with cryptocurrencies should connect with Thailand’s Security Exchange Commission within ninety days.
The Bank of Thailand assumes that the future of banking services with blockchain technology.