Thailand’s Central Bank announced on Monday that 14 Thai Banks will partner to form the Thailand Blockchain Community Initiative. This association will use a shared blockchain platform to digitize letters of guarantee.
The infrastructure was originally created by IBM and Kasikornbank in July 2017.
The four biggest Thai banks Bangkok Bank, Krung Thai Bank, Siam Commercial Bank and Kasikornbank are leading the community that is going to be built on Linux Foundation’s distributed ledger called Hyperledger Fabric.
In 2017, Thailand’s commercial banking system issued 500 000 letters that cost more than $40 million, according to Kasikornbank.
Veerathai Santiprabhob, Bank of Thailand governor mentioned on Monday,
“With this infrastructure sharing, banks do not need to invest on their own. Interoperability enhances efficiency, reduces costs in our financial sector and addresses the needs of the consumer and the business sector.”
“For the business sector, 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,” the Nation quoted him as he was speaking.