Thanachart Bank, one of the 14 Thai banks that have joined the Thailand Blockchain Community Initiative (BCI), has announced that it is ready to start issuing Letters of Guarantee (LGs) using blockchain.
Thanachart has revealed that it is initially partnering with three corporations — IRPC, GC Marketing Solutions, and Siam Cement Group — to issue electronic LGs. The LG issuances using blockchain were effective from June 14th, 2019, with the potential to serve more companies in the near future.
The BCI is a blockchain initiative led by the Bank of Thailand (BoT). Earlier this year, domestic commercial banks signed an agreement to develop a blockchain platform to digitalize the process of LG issuances.
With blockchain, which offers more transparency and efficiency compared to traditional platforms, LG issuances can be completed more quickly and at a lower cost to stakeholders.
The project to issue LGs using blockchain was the first step according to the BCI’s roadmap to promote use cases that will see the adoption of blockchain among Thailand’s banks and financial institutions.
The technology is also expected to increase the competitiveness of Thai businesses and promote further cooperation among commercial banks.
The BoT has also collaborated with banks to spearhead Project Inthanon, a multi-phase project aimed at developing a Central Bank Digital Currency (CBDC).
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