Connect with us
Thailand Business Directory

Banking

Bank of Thailand Launches First Government Savings Bond based on Blockchain Technology

In the past, the sale of government savings bonds was a complex, multiparty, time-consuming process that relied on a non-real-time system, with duplicated validation steps and manual reconciliation prone to data errors.

Pr News

Published

on

BANGKOK, Thailand, Oct. 5, 2020 /PRNewswire/ –SIBOS — IBM today announced that Bank of Thailand(BOT), the central bank, has successfully launched the world’s first blockchain-based platform for government savings bonds issuing a total of $1.6B USD within two weeks.

Leveraging blockchain technology on the highly secured IBM Cloud, the platform allows investors to benefit from speedy bond issuance, reducing a process that previously took 15 days to two days.

The efficiency provided by blockchain also reduces operational complexity and the overall cost of issuing bonds.

According to The Thai Bond Market Association, the outstanding Thai bond market stood at $421B USD as of December 2019. Government bonds dominate the Thai market, with an outstanding value of $157B USD in 2019 1, accounting for 37% of the total outstanding Thai bond market.

World’s First Government Savings Bond based on IBM Blockchain Technology

In the past, the sale of government savings bonds was a complex, multiparty, time-consuming process that relied on a non-real-time system, with duplicated validation steps and manual reconciliation prone to data errors.

As blockchain technology streamlines the processes of bond issuance for issuers, underwriters, registrars, investors and key ecosystem participants, the government savings bond platform now becomes an immutable, real-time single source of truth for network participants, which minimises the redundant validation and reduces the costs of reconciliation.

In addition, Thai investors can now purchase bonds up to the maximum value of their individual allocated quota from a single bank.

The effort to develop a secure and efficient government bond infrastructure involved collaboration among eight institutions including BOT, Public Debt Management Office, Thailand Securities Depository Co., Ltd, Thai Bond Market Association and selling-agent banks, including Bangkok Bank, Krungthai Bank, Kasikorn Bank, and Siam Commercial Bank, with IBM Blockchain as technology and cloud platform partner.

The benefits and business value of using blockchain technology

The benefits and business value of using blockchain technology for government bond distribution is shared across stakeholders, and include faster bond issuance for investors, decreased workloads and processing time for issuers, underwriters and registrars, as well as greater transparency and reduced operating costs across the entire value chain.

“Bank of Thailand’s success with the government savings bond project is the latest example of how blockchain technology can redefine the way businesses operate by simplifying complex processes resulting in fast, transparent, secured and efficient multiparty collaboration.”

Patama Chantaruck, VP for Indochina Expansion and MD of IBM Thailand.

“IBM is proud to bring our world-class blockchain platform and IBM Cloud to support Bank of Thailand, and work side-by-side with them in achieving this important milestone for Thailand’s financial industry.”

Bank of Thailand now plans to extend blockchain to all other government bonds targeting both retail and wholesale investors.

Thailand is an active adopter of blockchain technology

Thailand is an active adopter of blockchain technology, with a dynamic ecosystem extending to both public and private spheres. In 2019, the electronic letter of guarantee (eLG) platform and network participated in by 22 Thai banks and 15 companies successfully went live and currently handles approximately $300M USD in guarantee letters.

Thai Customs Department also became the second government agency in southeast Asia to use TradeLens, a blockchain-based global trade digitization platform that improves the speed, accuracy and security of local and international shipping activities. More pilots and applications of blockchain are also being rolled out to bring transparency and efficiency to finance, insurance, government and other sectors.

1Size of Thai Financial Markets , Issuance of Domestic Bonds , Outstanding Value of Domestic Bonds http://www.thaibma.or.th/EN/Market/SummaryStatistics.aspx

Siam News Network includes top references news sites, Job Board, Business Directory and Classifieds Portal

Comments

Banking

Bank of Thailand extends debt repayment and interest reduction measures

As of September this year, the Debt Clinic project has helped some 8,300 card debtors. On average, each debtor has three cards, carrying a debt of about 240,000 baht each.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – The Bank of Thailand has extended its debt repayment and interest reduction measures until June next year, to help debtors and alleviate their financial burden.

(more…)

Continue Reading

Banking

Bank of Thailand: five big challenges in resolving the economic crisis

According to the Bank of Thailand, financial stability of the country is sound while external stability remains strong, with low and manageable levels of public debt, and a flexible labor market.

Boris Sullivan

Published

on

Mr. Sethaput Suthiwartnarueput, Governor of the Bank of Thailand (BOT) revealed in his first meeting with the press, that the public health crisis brought about by COVID-19 has severely impacted global economic activities, including Thailand.

(more…)

Continue Reading

Banking

Bank of Thailand to end debt moratorium for SMEs

According to a press release from the Bank of Thailand, the concern is that while most businesses can now continue payments, an extension of the assistance measure could impact the long-term stability of financial institutions.

Avatar

Published

on

BANGKOK (NNT) – The Bank of Thailand (BoT) has decided not to extend a general order to suspend debt repayment by SMEs to commercial banks set to end this October 22, instructing the institutions to consider such aid on a case by case basis instead, to protect the sector from long term impact.

(more…)

Continue Reading

Cart

Most Viewed

Events Calendar

« October 2020 » loading...
M T W T F S S
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
1
Thu 29

Vend ASEAN(Bangkok)Vending Machine & Self-service Facilities Expo 2020

October 28 @ 8:00 am - October 30 @ 5:00 pm BMT
Thu 29

Vend ASEAN 2020

October 28 @ 10:00 am - October 30 @ 6:00 pm BMT

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,071 other subscribers

Latest

Trending