Bank of Thailand, Commercial Banks Launch Blockchain Letters of Guarantee

Asia Blockchain Review
August 11, 2019
Bank of Thailand, Commercial Banks Launch Blockchain Letters of Guarantee

The Bank of Thailand (BoT) announced the establishment of the Thailand Blockchain Community Initiative (BCI), which has signed on 22 commercial banks and other organizations to promote the use of blockchain technology, beginning with the issuance of electronic Letters of Guarantee (e-LGs).

Electronic LGs Seen as Milestone in SEA Blockchain Adoption

Veerathai Santiprabhob, Governor of the Bank of Thailand, talked about the central bank’s progress to develop use cases for blockchain at a conference held on May 29th, 2019 in Bangkok.

He said the introduction of e-LGs is among the initiatives backed by the BoT to digitalize the banking and finance sector. Since the launch of the BCI, commercial banks have signed an agreement to develop a blockchain platform to digitalize the process of LG issuances. 

With blockchain, which is purported to offer greater transparency and efficiency when compared to legacy systems, LG issuances can be completed more quickly, securely, and at lower cost to stakeholders. Moreover, the BCI is expected to drive greater adoption of distributed ledger technology across industries in Thailand.

Developments Toward Central Bank Digital Currency in Thailand

At the seminar, Veerathai disclosed that the central bank’s Project Inthanon is also developing a prototype Central Bank Digital Currency (CBDC) with eight commercial banks in the country. A CBDC could be used to decentralize interbank settlements. 

According to the BoT Governor, the project was slated to enter its third phase in August 2019. Phase III, expected to conclude in the fourth quarter of the year, is focused on seeking ways to carry out cross-border transfers.

Source: https://siamblockchain.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
IBM Introduces Blockchain Credentials Network for Educational Institutes
IBM has introduced a blockchain-based credentials network that will allow college graduates to provi...

December 9, 2019

Indian State Adopts Blockchain Technology Developed by Power Ledger
Uttar Pradesh, the most populous state in India, is adopting Power Ledger’s blockchain platform to p...

December 9, 2019

IBM Wins Technology Patent to Prevent Drone Theft
IBM has won a patent for a blockchain-based system to prevent drones from stealing packages with th...

December 8, 2019

3 Blockchain Trade Finance Projects in China Pass $63bn in Volume
Three major blockchain trade finance initiatives in China have a combined volume of US$63 billion, w...

December 8, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us