The e-LG on blockchain is expected to go live in June under the BOT’s regulatory sandbox, before introducing additional beneficiaries in the third quarter of 2019 and providing other blockchain-based services in the future.
Over 150 billion baht in venture capital has been invested in the blockchain business worldwide last year, signifying the increased role of blockchain technology.
Blockchain Community Initiative Co. issued the world’s first electronic letters of guarantee in the third quarter last year and plans to increase the number of electronic letters of guarantee by 50% in three years.
Bank of Thailand Governor Virathai Santipraphop said today the blockchain system uses high technology to efficiently develop businesses as well as the financial sector.
Last year, about 150 billion baht in venture capital was invested worldwide, thus prompting the financial sector to focus on it.
Blockchain Community Initiative Thailand, provides electronic letters of guarantee for 22 financial institutions.
The Bank of Thailand has used blockchain in developing its trading system for government bonds which can be run promptly and save on operating costs. It can run interbank payments while BCI Co. can issue electronic letters of guarantee, thus replacing over the counter business and curtailing repetitions and errors in doing business.
BCI (Thailand) was formed with initial capital from six Thai banks – Bangkok Bank, Krungthai, Bank of Ayudhya, Kasikornbank, TMB and Siam Commercial. The company will provide the service together with 16 participating banks – Kiatnakin Bank, Citibank, CIMB Thai, Sumitomo Mitsui Banking Corp, Tisco, Thanachart, BNP Paribas, Bank for Agriculture and Agricultural Cooperatives, Export-Import Bank of Thailand, Mizuho Bank, United Overseas Bank (Thai), Land and Houses Bank, Standard Chartered (Thai), Government Savings Bank, Industrial and Commercial Bank of China (Thai) and the Hongkong and Shanghai Banking Corporation.
Nine state enterprises and large corporates are also beneficiaries, namely the Metropolitan Electricity Authority, Electricity Generating Authority of Thailand, Provincial Electricity Authority, Thai Oil, PTT, SCG, PTT Global Chemical, GC Marketing Solutions and IRPC. BCI (Thailand) also received tech and legal support from six partners – Accenture Solutions, Baker & McKenzie, Processing Center, IBM Thailand, TBN Software and Kasikorn Business-Technology Group.
Thai Bankers Association President, Pridi Dachai says BCI Co. was set up for partners to join hands to do business, develop technology and create innovation for the first time in the world. The first electronic letters of guarantee were issued via blockchain in the third quarter last year.
The number of electronic letters of guarantee was planned to increase 50% in three years. Over 500,000 letters of guarantee have been issued, amounting to over 1.35 billion baht in combined value, in a year.
The blockchain system is highly stable, secure and makes it difficult for hackers to tamper with networked data which can be stored, disseminated and remain available for analytical uses.
Thai Baht currency control mulled by central bank
The Industry Minister proposed measures to help business owners, such as the promotion of Thai Baht as a currency for international trade to reduce the risks from US Dollar currency fluctuation
BANGKOK, 15th August 2019 (NNT) – The Minister of Industry has held talks with the Bank of Thailand’s Governor over measures to control the fluctuation of Thai Baht currency, minimize impacts faced by SMEs and promote the import of machinery during this time to take advantage of the stronger currency.(more…)
Thailand’s dangerous debt addiction
Thailand is now a top-ten highest household debt country among 89 countries worldwide and third highest among 29 Asian countries.
Thailand’s household debt has steadily increased to 78.6% of the country’s gross domestic products (GDP), or Bt12.8 trillion in the fourth quarter of last year, according to figures from the National Economic and Social Development Council.(more…)
Thailand’s four challenges : Debt, inequality, plastics and climate change
Thais tended to get into debt faster, for longer and for higher amounts. Indebtedness starts as soon as they begin to work at age 25 and can increase until 56 years old.
Bank of Thailand Governor Veerathai Santiprabhob, in his speech entitled “Formulating for the Future of Corporate Governance”, delivered at the Finance and Beyond National Director Conference 2019 in Bangkok (July 24th), said Thailand faces four challenges that require good governance in businesses to address.(more…)
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