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Bank of Thailand to use blockchain and digital currency

Tuesday 12 June 2018 07:47 CET | News

Bank of Thailand has announced that it is currently developing and testing blockchain applications in the bank’s regulatory sandbox.

Bank of Thailand representatives have stated that the central bank is exploring blockchain use cases in various financial applications, including supply chain, bond issuance and letters of guarantee. This initiative is a collaboration between 14 Thai banks and seven businesses and state-owned enterprises to use blockchain technology in financial services, starting with a pilot project to offer blockchain-based letters of guarantee.

The project is expected to become operational in the second half of 2018. According to Bank of Thailand, they are also planning to develop a way of conducting inter-bank settlements using a wholesale central bank digital currency with the purpose of enabling faster and cheaper settlements between banks on the domestic inter-banking system.

Moreover, the Payment Systems Act, which came into force in April 2018, legislated that domestic crypto exchanges, initial coin offering (ICO) operators, and independent crypto brokers and dealers are required to register with the Thai Security Exchange Commission. This enables Bank of Thailand to both regulate and oversee development of Thai payment systems.


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Keywords: Bank of Thailand, Thailand, blockchain, digital currency, supply chain finance, bond issuance, letters of guarantee, Thai Security Exchange Commission
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