Central Bank of Thailand Adopts Blockchain and Cryptocurrency

Thailand: The Central Bank of Thailand has recently released an announcement that it is currently developing and trying out blockchain applications in its regulatory sandbox.

Representatives of the Bank stated that the central bank is investigating blockchain use cases in several financial applications, which include supply chain, bond issuance and letters of guarantee. This project is a collaboration between 14 Thailand banks and 7 businesses and state-owned enterprises to use blockchain technology in financial services, starting with a test project to offer blockchain-based letters of guarantee.

According to the central bank, the project should become operational during the second half of 2018. The bank is planning to develop a way of conducting inter-bank settlements using a wholesale central bank cryptocurrency with the purpose of aiding faster and cheaper settlements between banks on the domestic inter-banking system.

More so, the Payment Systems Act, which came into force in April 2018, legislated that domestic cryptocurrency exchanges, operators of initial coin offerings (ICOs), and independent cryptocurrency brokers and dealers are under obligation to register with the Thai Security Exchange Commission. This enables the Central Bank of Thailand to oversee and regulate the development of Thai payment systems.

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