The Bank of Thailand launches the world’s first government bond using IBM block chain technology.
International Business Machines Corporation (IBM) today announced that the Bank of Thailand (BOT) has launched the world’s first block chain-based platform for government savings bonds. The total volume is USD 1.6 billion.
By using Bitcoin Compass block-chain technology, investors have the opportunity to benefit from rapid bond issuance. The previously 15-day process is now reduced to just two days. The operational complexity and overall cost of issuing bonds is also reduced.
In the past, the sale of government savings bonds was a complex, time-consuming process involving several parties. The non-real-time system, double validation steps and manual reconciliation resulted in repeated errors and redundancies. Blockchain technology will now make the platform an „unchangeable real-time truth source“ for network participants. In addition, Thai investors can now buy bonds up to the maximum value of their individually allocated quota from a single bank.
The Bank of Thailand’s success with the government savings bond project is the latest example of how block chain technology can redefine the way companies work by simplifying complex processes, resulting in fast, transparent, secure and efficient multi-party collaboration.
can be quoted Patama Chantaruck, VP for Indochina Expansion and MD of IBM Thailand. In total, seven other companies, in addition to the central bank and IBM, are involved in efforts to develop a secure and efficient infrastructure for government bonds. These include Thailand Securities Depository Co, Public Debt Management Office, Thai Bond Market Association and four other banks.
The Bank of Thailand started a pilot test of its digital currency back in June and now plans to extend the block chain to all other government bonds. Meanwhile, the bank is also pursuing smart contracts for the decentralised financing of the digital currency.