Thailand Adopting Blockchain Technology for Interbank Settlements
In Thailand, the country’s central banking authority is taking up a trial on blockchain technology for interbank clearance and settlement system.
Recently, Central bank governor Veerathai Santiprabhob gave a speech in Singapore. In the speech, he indicated that developing a wholesale central bank digital currency is the beginning of the country’s efforts in bringing blockchain technology in various sectors.
The project is named dubbed Inthanon. It will create bank’s own blockchain-based cryptocurrency. This will make the interbank transactions faster and cheaper.
The initial aim of this trial project is to understand the potential of the technology before introducing CBDC into large scale.
Central bank governor Veerathai Santiprabhob in his speech said,
“Like other central banks, our goal is not to immediately bring CBDC into use, but rather to explore its potential and implications for back-office operations. These efforts should pave way for faster and cheaper transaction and validation due to less intermediation needed compared to the current systems.”
Earlier, in March Thai Banks have come together with the central bank in testing a shared blockchain platform to digitize letters of guarantee in the country. And it is expected to be operational in the second half of the year.
A proof-of-concept which works on a blockchain platform to issue bonds digitally is under testing by the central bank agencies, this could reduce bond allocation to retail investors from 15 days to 2 days.
As Santiprabhob further mentioned in his speech that this proof-of-concept is likely to be launched in the very near future.
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