The Central Bank of Thailand used the block chain technology to issue bonds.
According to the BOT, the block-chain platform will help improve the buying experience of investors.
There are two bonds, and both are targeted at retail investors.
The Central Bank of Thailand recently announced that on Friday it successfully sold 50 billion baht ($1.6 billion) of government savings bonds using the block chain technology. The project focuses on enabling investors to obtain bonds more quickly and reduce the operating costs of issuing bonds.
The Bank of Thailand new write-off bonds
In an official press release, Thailand’s central bank announced that the platform known as the DLT Scripless Bond Project is a collective effort involving seven other organizations, including the Project Debt Management Office, Thailand Securities Depository Co, Ltd, and banks with sales agents such as Bangkok Bank, Krungthai Bank, Kasikorn Bank, Siam Commercial Bank and the Thai Bond Market Association.
According to the press release, there are two bonds exclusively for private investors. About five billion baht ($160 million) of 1 baht bonds were sold in pieces for 100 baht. The issue was made following a free trial three months ago using the electronic purse of Krungthai Bank.
The second issue, called “moving forward” bonds, sold about 45 billion baht ($1.44 billion) and invested at least 1,000 baht. Three other banks were involved in the second bond issue, including Bangkok Bank, Kasikorn Bank and Siam Commercial Bank.
The Bank of Thailand explained:
“The new infrastructure was successfully put into operation with the support of government savings bonds: “1-baht bond” and “Move forward”. The total issue of THB 50 billion was fully allocated to investors earlier than expected. In the next phase, the infrastructure will be expanded to support all the various government bonds.
Thailand’s block chain approach pays off
One of the countries that wants to drive forward the potential of block chain technology is Thailand. In July, the state began testing the CBDC with extensive business before its official debut.
However, Thailand’s various block chain incentive tests took a giant leap forward when the country announced its plans to modernize the travel sector by issuing block chain-based visas.
Thailand’s plan to use block-chain technology for its travel industry was designed to ensure that the industry would speed up visa application procedures and safely manage the vital information of tourists in the country.
The country also conducted cross-border payment tests with the Hong Kong Monetary Authority.
With the official launch of block chain digital bond issuance, Thailand is complementing its efforts to advance block chain technology.