Veerathai Santiprabhob, governor of the Bank of Thailand, said that the bank of thailand bitcoin bank is planning to adopt blockchain technology for its bond issuance and wholesale central bank digital currency. He said the central bank’s bond issuance via blockchain would shorten the time for bond underwriting from around 15 days to a few days. According to the governor, the Bank of Thailand has a proof of concept to develop a wholesale bank digital currency using blockchain to be called Inthanon. This program will improve the bank’s management of interbank Baht settlements, as well as keeping its practices current with its counterparts in the rest of the world.
The project would increase efficiency and slash interbank settlement. More than five financial institutions, both local large and foreign banks, have shown interest in participating. With the massive transaction volume of such banks, the project would improve efficiency and Thailand’s ecosystem. Santiprabhob also announced that 14 Thai banks have joined forces to create the Thailand Blockchain Community Initiative, which will digitize letters of guarantee on a shared blockchain platform. The initiative also has the backing of three state enterprises and four large corporations.
This include the Metropolitan Electricity Authority, the Provincial Electricity Authority, the Electricity Generating Authority of Thailand, PTT Global Chemical Plc, PTT Polymer Marketing, IRPC Plc and Siam Cement Group. Santiprabhob said the Thailand Blockchain Community Initiative will reduce the complexity of connecting to the same financial services provided by different banks, facilitate data verification on the same blockchain network, mitigate risks of counterfeiting and increase timeliness as well as security. Interoperability enhances efficiency, reduces costs in our financial sector and addresses the needs of the consumer and the business sector. It is expected to have an interoperability launch in the third quarter of this year. Tracking Bitcoin news and the incredible adoption of Bitcoins! Bank of Thailand Officials Call Bitcoin Activities Illegal Thailand-based Bitcoin Co.
Bank of Thailand advised the company that various Bitcoin trading activities are illegal in Thailand. The company runs an exchange, allowing users to buy and sell Bitcoin, and has suspended operations after the guidance by the Bank of Thailand. During the past several months Bitcoin Co. Thailand, has been in the process of registering with the various Thai government agencies in order to operate in a lawful manner. Included in this due diligence was to reach out to the Bank of Thailand, the governing body that regulates financial transactions in Thailand, and ask for guidance as to any applicable licenses in buying and selling bitcoins. Initially the Bank of Thailand had bypassed the company’s money exchange license on the basis that Bitcoin was not a currency, however the company was invited back, on July 29th, 2013, to participant in a conference about how Bitcoin works in general, and business operations of Bitcoin Co.
The conference was held with about 15 members of the Bank of Thailand in attendance. During this conference directors of Bitcoin Co. Based on such a broad and encompassing advisement, Bitcoin Co. Thailand are updated to account for the existance of Bitcoin. The Bank of Thailand has said they will further consider the issue, but did not give any specific timeline.