- Thailand’s central bank leveraged blockchain technology to issue bonds.
- According to the BOT, the blockchain platform will help improve the buying experience of investors.
- There are two bonds and both target retail investors.
Thailand’s Central Bank recently stated that it successfully sold 50 billion baht ($1.6 billion) on Friday, in government savings bonds that leveraged blockchain technology. The project focuses on enabling investors to receive bonds faster and reduce operating costs when issuing bonds.
The bank of Thailand new scripless bonds
Through an official press release, Thailand’s Central Bank said the platform known as DLT Scripless Bond Project is a collective effort that involves seven other organization including the Project Debt Management Office, Thailand Securities Depository Co., Ltd, selling-agent banks like Bangkok Bank, Krungthai Bank, Kasikorn Bank, Siam Commercial Bank, and the Thai Bond Market Association.
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As per the release, there are two bonds solely for retail investors. About Five billion baht ($160 million) of 1 Baht bonds were sold in bits for 100 Baht. The issuance followed a complimentary trial three months ago using the Krungthai Bank e-wallet.
The second issuance, called a ‘Moving Forward’ bond, has about 45 billion Baht ($1.44 billion) sold, and 1,000 Baht minimum as an investment. The second involved three more banks, such as Bangkok Bank, Kasikorn Bank, and Siam Commercial Bank.
The Bank of Thailand stated:
“The new infrastructure successfully went live by supporting Government Savings Bonds: “1 Baht Bond” and “Moving Forward.” The total issuance of 50 billion THB has been entirely allocated to the investors sooner than expected. In the next phase, the infrastructure will expand to support all different government bonds.”
Thailand’s blockchain stance is paying off
One of the countries that aim to drive the potentials of blockchain technology is Thailand. In July, the state started testing the CBDC with extensive business, ahead of its official debut.
However, Thailand’s different tests with blockchain incentives took a giant leap forward when the country announced its plans to refurbish the traveling sector by issuing blockchain-based visas.
Thailand’s plan to use blockchain technology for its traveling industry was projected to ensure the industry speeds up visa application processes and safely guides the vital information of tourists in the country.
The country also ran cross-border payment tests with the Hong Kong Monetary Authority.
Through the official launch of blockchain-based digital bond issuance, Thailand compliments its strides to ensure blockchain technology advances.