The Bank of Thailand (BoT) has expressed confidence in its projects to utilize DLT for domestic and international transfers, as well as for the issuance of scripless bonds. The initiatives have been under development in cooperation with government agencies and commercial banks.
Dej Titivanich, Assistant Governor of Information Technology Group at the Bank of Thailand, revealed that the central bank has been developing use cases for decentralized ledger technology (DLT) that will benefit the public. The announcement was made at the third “Blockchain the Series @ BOT” conference held on May 29th, 2019 in Bangkok.
“With billions of baht in circulation between banks every day, the BoT saw an opportunity to implement blockchain as a way to offset risks in the interbanking system,” Dej said.
The BoT’s Project Inthanon is focused on developing a prototype Central Bank Digital Currency (CBDC) with eight commercial banks in the country. It aims to decentralize interbank settlements which traditionally have a centralized architecture.
In its first phase, the project established a fundamental payment infrastructure, while the second phase saw the implementation of DLT. Dej revealed that the BoT’s blockchain project is in its third phase, which is focused on seeking ways to carry out cross-border payments.
The BoT Assistant Governor disclosed that the second project is the development of DLT scripless bonds. According to him, the government typically required 15 days from registering to depositing bonds for investors, making for a complicated process overall.
Therefore, the BoT has been working with the Public Debt Management Office, the SET’s Thailand Securities Depository, and the Thai Bond Market Association by conducting proofs of concept using blockchain technology.
“Currently, the proofs of concept are already successful, and the BoT expects to finish developing the platform by the end of 2019,” Dej said.
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