The Bank of Thailand launched the first blockchain-based government savings bond issuance platform using IBM’s blockchain technology.

Within two weeks of the launch, the central bank sold more than $ 1.6 billion in savings bonds, according to an official statement released by IBM on October 5, 2020.

The use of blockchain technology is said to have reduced the period of bond issuance from 15 days to two days. Improving process efficiency has also reduced operating costs and unnecessary document controls related to bond issuance.

IBM has partnered with the central bank with seven other institutions, including the Government Debt Authority, the Thai Depository Corporation, the Thai Bond Market Association and four other banks.

The Bank of Thailand may soon extend the use of blockchain technology to all other government bonds for private and wholesale investors.

The Central Bank of Thailand is actively involved in the blockchain and cryptocurrency space. In June, the bank launched a pilot test of the central bank’s digital currency, the digital baht, to test it in large companies. The bank also announced next month that it plans to use its digital currency in transactions with the Hong Kong Financial Authority.

The Bank of Thailand is also developing smart contracts and decentralized financing cases for its national digital currency.

Source: CoinTelegraph