Fourteen banks have jointly launched the “Thailand Blockchain Community Initiative”, under which the country’s first project for blockchain-based letters of guarantee (LGs) will initially be implemented, aimed at reducing costs and increasing productivity for both banks and their clients.
In collaboration with three state enterprises and four large business corporations, the 14 banks announced the establishment of the initiative on Monday.
They aim to upgrade businesses efficiency and competitiveness by adopting blockchain technology, with the initiative initially implemented via the LG project.
This will lead to fully integrating the LG system worth Bt1.35 trillion into the era of electronic documentation, whereby their operating costs will be cut by half, the banks announced in a statement.
The system is currently being tested in the Bank of Thailand’s regulatory sandbox.
It is expected to have an interoperability launch in the third quarter of this year, according to the press statement.