Thailand's Central Bank Considers Reviewing Blockchain Applications
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Thailand’s Central Bank Considers Reviewing Blockchain Applications

The Central Bank of Thailand is considering various blockchain applications including cross-border payments.

Dr. Veerathai Santiprabhob, the Governor of the Bank of Thailand, revealed that the central bank was considering a review of blockchain applications for purposes of supply chain financing, document authentication, and cross-border payments. The central bank’s regulatory sandbox will be carrying this out.

Dr. Veerathai Santiprabhob said,

“The sandbox serves as a platform for financial institutions and FinTech firms to test new technologies and operating standards in a safe environment before the products and services are launched to the general public. Technologies under (sic) reviewed include … blockchain applications for cross-border payments, supply chain financing, and document authentication.”

The governor also affirmed the central bank’s commitment to regional connectivity. Dr. Santiprabhob said that one way to achieve this was through the use of blockchain applications that enable cross-border payments.

He also said that the central bank was looking to apply blockchain technology, and other technologies such as biometrics, in safeguarding financial information so as to reduce fraud.

This is not the first time that the Bank of Thailand has demonstrated its commitment to blockchain technology. In the last month of June also Governor of the central bank disclosed that the Bank of Thailand was working along with the country’s financial sector. The bank was working under the Thailand Blockchain Community Initiative which was launched in March of 2018 to harness blockchain technology in banking. The initiative brought together 14 commercial banks as well as seven public and private enterprises.

The Governor further disclosed that the initiative was working on ‘Project Inthanon’ which would see a central bank digital currency launched to conduct interbank settlements.

Dr. Santiprabhob had declared in one of his speeches in Singapore,

“Another project in the pipeline is the “Project Inthanon” in which the Bank of Thailand and banks will co-develop a new way of conducting interbank settlement using wholesale central bank digital currency or CBDCs. 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”.

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Aayushi Dhawan
Aayushi Dhawan is an avid reader, researcher, crypto writer and a passionate student. While pursuing her graduation in commerce at SRCC, she realized that writing and Finance give her immense pleasure. She is currently pursuing her post graduation in Commerce (Finance) from Department of Commerce, Delhi School of Economics and keeps on exploring the intricacies of research, her biggest strength.