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).
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.
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.
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