14 banks from Thailand announced the establishment of the Thailand Blockchain Community Initiative, which will digitize warranty letters on a common blockchain platform. This is reported by Nikkei.
Leading banks of the country, including Bangkok Bank, Krung Thai Bank, Siam Commercial Bank and Kasikornbank, will join the initiative. As a technical basis for the project, it was decided to use Hyperledger Fabric from the Linux Foundation.
With this infrastructure sharing, banks do not need to invest on their own. Interoperability enhances efficiency, reduces costs in our financial sector and addresses the needs of the consumer and the business sector.
Gov., Bank of Thailand
It is noted that the blockchain platform of the new organization was first launched by Kasikornbank in cooperation with IBM in July 2017.
In Thailand, the issuance of letters of guarantee that fix the payment obligations of customers, can take several days. Digitizing these documents and transferring them to a blockchain can reduce this time to as little as 30 minutes.
The participation in the project will also be accepted by the Electricity Generating Company of Thailand and Siam Cement Group. The testing of the new system will take place in a special "sandbox" of the Central Bank of the country.