The Metropolitan Electricity Authority (MEA) and BCI (Thailand) Co., Ltd., in collaboration with the Bank of Thailand (BOT), have launched an electronic letter of guarantee service on blockchain technology (eLG on Blockchain). This initiative aims to enhance service standards by leveraging digital technology to improve processes, increase convenience, speed, and safety for electricity users.
Mr. Pipat Chonumpai, Deputy Governor of the Metropolitan Electricity Authority, stated that as an organization providing electricity services to consumers in Bangkok, Nonthaburi, and Samut Prakan, they are committed to driving creativity, innovation, and technology in their operations. One key aspect is improving service standards through digital technology and delivering a fully digital service for an enhanced customer experience.
The eLG on Blockchain service between the Metropolitan Electricity Authority and BCI (Thailand) enables convenient, quick, safe, and reliable transactions throughout the process of requesting collateral, renewing letters of guarantee, and returning them upon fulfillment of obligations. Additionally, it offers benefits such as reduced operating costs for document storage and maintenance, as the shift from paper-based guarantees to an electronic system minimizes administrative overhead.
The Metropolitan Electricity Authority joined BCI (Thailand) in December 2022 as a member of the electronic letter of guarantee service provider on blockchain technology, initially facilitating some power users and planning for continuous expansion.
Miss Siritida Phanomwan Na Ayudhya, Assistant Governor of the Payment Systems Policy and Financial Technology Group at the Bank of Thailand, congratulated the event and highlighted that BCI (Thailand) was established in collaboration with the banking sector to drive the adoption of blockchain technology in banking and business. The "Electronic Letter of Guarantee" service, BCI's inaugural offering, successfully passed innovation testing in the Bank of Thailand's Regulatory Sandbox. This system, utilizing blockchain for letter of guarantee management, aligns with the country's digital infrastructure development, encompassing not only the business sector but also various government agencies. It reflects the Bank of Thailand's strategic plan to address challenges, foster change, and promote the timely development and adaptation of the economic and financial system.
Mr. Kukkong Ruckphaopunt, Chairman of the Board of BCI (Thailand) Co., Ltd., revealed that the eLG on Blockchain service currently has more than 19 banks participating on the platform, along with over 170 government agencies, state enterprises, and private sectors as recipients of letters of guarantee. The platform already handles over 150,000 letters of guarantee, with expectations of continuous growth. The goal is to cover more than 80 percent of the country's letter of guarantee volume within five years.
MEA's participation in the service will reduce document management and data maintenance costs while streamlining processes under robust security measures. Documents can be swiftly verified through the electronic system, enabling the Metropolitan Electricity Authority to become a sustainable Digital Utility organization. The collaboration between the Metropolitan Electricity Authority and BCI includes plans to extend the issuance of eLG on Blockchain to electricity users across Bangkok, Nonthaburi, and Samut Prakan, allowing for convenient, fast, secure, and efficient service through the 19 partner banks.
Mr. Siriwat Kiatcharoensin, General Manager of BCI (Thailand) Co., Ltd., added that alongside the success of the electronic letter of guarantee service on the blockchain system, the company is exploring other use cases for blockchain technology to develop new services. For instance, the Electronic Bank Confirmation on Blockchain (eBC) is being studied to provide auditors with information on assets, obligations, and financial transactions, facilitating convenient, fast, and secure audits. BCI expects to offer this service to all auditors by 2023, collaborating with various sectors, including the Securities and Exchange Commission, the Federation of Accounting Professions, the Bank of Thailand, and financial institutions and auditors globally.