A total of 22 Thai banks and foreign-bank branches have joined hands to build a full network of electronic Letter of Guarantee (e-LG) on blockchain via BCI (Thailand) Co., Ltd. with support of the Bank of Thailand (BOT).
The first of its kind in the world, these 22 banks collaboratively adopt the common blockchain system. This effort aims to the 50 percent increase in the use of blockchain-based e-LG by Thai businesses within three years, which will help slash their operating costs as they can use the service provided by any participating bank on this common platform. The initiative is expected to bolster competitiveness for both businesses and the nation, as a whole.
Dr. Veerathai Santiprabhob, Bank of Thailand Governor, said that this cooperation under Thailand Blockchain Community Initiative entails tangible progress, in particular, being able to effectively embrace the blockchain technology in financial and business sectors. Starting with 14 commercial banks together with state enterprises and large companies, there are currently 22 participating banks with the accomplishment of
establishing BCI (Thailand) Co., Ltd. to provide the blockchain-based e-LG as its first service. The collaboration marks an outstanding milestone in expanding the blockchain community in Thailand to accommodate myriads of services in the future. This will also elevate the country’s competitiveness capability through the use of shared infrastructure and blockchain technology, thus being a boon to the overall Thai economy. This initiative will not only be beneficial to Thai financial sector but also businesses as well as government sectors. The newly established BCI (Thailand) Co., Ltd. is expected to be an instrumental driver to enhance the blockchain
collaboration for broader coverage of services and stakeholders.
Mr. Predee Daochai, Chairman of Thai Bankers’ Association and Chairman of the Board of Directors of BCI (Thailand) Co., Ltd., said that blockchain technology has become widely accepted and increasingly adopted worldwide. Thailand has also begun applying the blockchain technology in business operations to enhance convenience and security, resulting in significant reduction of paperwork. To strengthen the collaboration under Thailand Blockchain Community Initiative, BCI (Thailand) Co., Ltd. is formed to focus on researching and developing technologies and innovations to provide innovative services under sound supervision. Being able to connect all participating banks on the common platform, the system can be further implemented as part of the national infrastructure. This will promote the adoption of new technology in all business segments, as well as enhancing the efficiency and competitiveness capability of Thai business sector and economy for sustainable growth.
Source: The Nation Thailand