Thailand’s Ministry of Finance stated that it is driving three blockchain projects in areas including government procurement, bond issuance, and tourist VAT refunds.
The initiatives are expected to digitize these processes, while enhancing the efficiency of operations for both service providers and receivers.
According to Ledger Insights, the Thai government is adopting blockchain technology for e-procurement in order to issue guarantees, reduce the need for collateral checks, and promote economic growth. Krung Thai Bank will be providing additional services, including business verification and credit scoring.
The Thai government is currently engaged in a large number of procurement projects. In 2019, over 3.6 million projects have entered the procurement process with more than 270,000 suppliers.
Another project being carried out is the issuance of scripless savings bonds over a blockchain that will decrease the issuance time from 15 days to only two. The initiative will also increase accessibility to bond issuances and implement blockchain technology to facilitate the management of investment portfolios.
The Ministry of Finance disclosed that the project has been assigned to the Public Debt Management Office and will officially be launched in May 2020.
One of the most anticipated projects is using blockchain to issue value-added tax (VAT) refunds for tourists. More than two million foreign tourists purchase products and services worth over US$1.66 billion every year, with approximately 200,000 VAT refund claims from tourists every month.
Thus, Krung Thai Bank, the Revenue Department, and the Customs Department have been developing a blockchain mobile application that allows tourists to apply for VAT refunds, with the decentralized technology to enhance security and transparency while preventing fraudulent refund claims.
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