Posted 8 months ago | by Ben Armstrong
Central Bank of Thailand Issues World’s First Blockchain Saving Bonds
With support from IBM, the Central Bank of Thailand has launched the first blockchain-based platform in the world which allows the issue government savings bonds. Approximately a $1.6 million USD in government savings bonds have been issued during the last two weeks through this channel.
The Office of Public Debt Management, the Association of Thai Bond Market, and Securities Depository corporation worked on the issuance, as well as major commercial banks such as Bangkok Bank, Krungthai Bank, Kasikon Bank, in coordination with the Central Bank and IBM's Blockchain department.
IBM provided blockchain technology and cloud platform support to enhance every stage in the bond issuance, making it easier for all parties taking part in the market.
Blockchain is a Good Fit for the Bond Market
Blockchain technology improves the transparency of government bond issuance and distribution among all stakeholders, at the same time, speeds up the process by eliminating duplicated roles and duties.
Thanks to that, bureaucratic procedures are simplified, enabling a faster access to the bond market at a much lower operational cost. In the traditional way, it would take up to 15 days to complete all necessary tasks, but now, blockchain can shorten the time involved to just 2 days.
The launch of this new blockchain government savings bond is expected to accelerate issuance in Thai bond market, which has seen more action in recent years. In 2019, the government bond alone accounted for more than one third of the Thai bond market, reaching $157 billion USD.
More Innovation Coming From Thailand the IBM
Managing Director of IBM Thailand, Patama Chantaruck, expressed his excitement for the successful launch of the platform and the potential for its impact on the Thai government bond market’s management.
In the future, similar applications will be deployed by the Central Bank to cover other government financial instruments and benefit all types of investors.
This is not the first time blockchain technology has been utilized in governance activities in Thailand. In the past, Thai Customs Department was the second office in SEA to use the TradeLens digitized platform to improve freight services.
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