Author: MOHAMMAD MUSHARRAF |
Compiler: Penny |
The Bank of Thailand used IBM’s blockchain technology to launch the world’s first blockchain-based government savings bond issuance platform.
According to IBM’s official announcement on October 5, 2020, within two weeks of issuance, the central bank sold savings bonds worth more than $1.6 billion.
It is said that the use of blockchain technology has reduced the bond issuance time from 15 days to only two days. Improved process efficiency also reduces operating costs and reduces redundant verification of documents related to bond issuance.
IBM and the Central Bank cooperate with seven other institutions, including the Public Debt Management Office, the Thai Securities Depository Co., Ltd., the Thai Bond Market Association and four other banks.
The Bank of Thailand may soon expand the use of blockchain technology in all other government issued bonds for retail and wholesale investors.
The Central Bank of Thailand has been actively involved in the field of blockchain and cryptocurrency. In June, the bank launched a pilot test of its central bank digital currency (digital baht) to test with large companies. According to reports, next month, the bank also plans to use its digital currency to conduct transactions with the Hong Kong Monetary Authority.
Bank of Thailand is also seeking smart contracts and decentralized financial use cases for its national digital currency.
