Bank of Thailand reviews blockchain applications in multiple areas

The Bank of Thailand is reviewing blockchain-based applications in a number of areas, governor Dr. Veerathai Santiprabhob said recently.

Speaking at the Bloomberg ASEAN Business Summit on July 12, Santiprabhob is reviewing blockchain applications in areas such as cross-border payments, supply chain financing, and document authentication.

Blockchain applications for cross-border payments can “help improve regional financial connectivity and facilitate smoother cross-border financial services,” he said.

“Adoption of modern technologies like biometrics and blockchains can help safeguard financial information and reduce the number and magnitude of fraudulent activities.”

Furthermore, the governor said that the central bank is also reviewing rules and regulations in a bid to foster innovation. He said:

“The Bank of Thailand is also undergoing regulatory reform to review outdated rules and regulations, to facilitate ease of doing business and ensure that our regulations do not impede competition and innovation and contribute to high costs of financial services.”

Earlier this year, the BoT completed the first phase of Project Inthanon, which aims to leverage blockchain technology to enable domestic fund transfers within the country’s interbanking system by issuing CBDC (central bank digital currency) tokens.

More recently, 22 Thai and foreign-bank branches have joined forces to create a blockchain network through the Thailand Blockchain Community Initiative (BCI). Santiprabhob said in May that the initiative aims to encourage competitiveness and maintain sustainable economic growth not only in the business sector but also in the entire country.