The Bank of Thailand(BOT) announced the successful launch of a new scripless bond platform that utilizes blockchain technology to issue Government Savings Bond.
BOT started to look into the advantages of using distributed ledger technology (DLT) and blockchain technology to potentially resolve problems with the process of selling savings bonds earlier in 2018 and initiated the DLT Scripless Bond project.
Based on the collaborative effort from BOT, Public Debt Management Office, Thailand Securities Depository Co., Ltd, Thai Bond Market Association and selling-agent banks, including Bangkok Bank, Krungthai Bank, Kasikorn Bank, and Siam Commercial Bank, the project achieved fruition.
According to BOT, the infrastructure “aims to enhance investors’ buying experience, improve operational efficiency and reduce overall cost. Fifty billion baht of government savings bonds have been sold out in a week.”
Such a positive response is due to the fact that harnessing blockchain technology helped reduce the overall cost involved. So, the bonds could be issued at face value of as less as 1 baht(typically minimum value used to be at least 1000 baht earlier) which allowed wider reach among the general public.
BOT adopted the use of blockchain for issuing savings bonds as the first use case scenario and based on its success, intends to apply the same to support other retail and wholesale government bonds.
