As reported on Monday, the Central Bank of Thailand, 14 Thai banks have joined forces to create the Blockchain Thailand Community Initiative, which will digitize the letter of guarantee on a joint blockchain platform.
Leading banks of the country — Bangkok Bank, Krung Thai Bank, Siam Commercial Bank and Kasikornbank will participate in the initiative, which uses a technology platform Hyperledger Fabric. For the first time this blockchain platform of the group was first launched Kasikornbank, in cooperation with IBM in July 2017.
“With such a shared infrastructure banks do not need to invest independently,” — said the head of the Bank of Thailand Virachai Santiprabhob (Veerathai Santiprabhob) during the press conference- “Cooperation increases efficiency, reduces costs in our financial sector and meets the needs of consumers and businesses”.
In Thailand making letters that banks issue to guarantee the payment obligations of their clients, at the moment, may take a few days. As reported by Nikkei, the digitization of documents and their translation into the blockchain can cut this process down to thirty minutes.
“Thailand Blockchain Community Initiative to reduce business-sector complexity of connecting to similar financial services provided by various banks will simplify the verification of data in the blockchain, and reduce the risk of forgery and improve security”, — quotes Santiprabhob newspaper the Nation.
The system will be initially tested in a “sandbox” Thai Central Bank and used for the issuance of letters of guarantee for auction of state enterprises and other internal trading operations.
The initiative also prepared to join the Directorate for the production of electricity of Thailand and Siam Cement Group, the second largest company in the country.