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Issued the first government bonds on the IBM blockchain

The Central Bank of Thailand (BoT) issued the first government bonds in history on IBM’s blockchain. 

This was announced by IBM itself, which reveals the launch of the world’s first blockchain-based platform for government savings bonds. A total of $1.6 billion of bonds will be issued on this platform over the next two weeks. 

According to the Thai Bond Market Association, the Thai bond market is around 42 billion dollars, and is dominated by government bonds, which represent 37% of this market with a total of 157 billion dollars. 

IBM reports that the sale of government savings bonds is a complex process, based on a system of several duplicate steps and error-prone manual reconciliation.

The advantages of bonds issued on the IBM blockchain

The new platform, based on IBM Cloud DLT, enables faster and safer issuance, reducing the process from 15 days to just 2 days. In addition, the efficiency provided by DLT reduces operational complexity and overall cost. 

Finally, the government savings bond platform becomes a single source of unchanging, real-time truth.

Its development has involved the collaboration of eight institutions, including of course the Bank of Thailand itself, the Public Debt Management Office, the Thailand Securities Depository, the Thai Bond Market Association, as well as banks and sales agents including Bangkok Bank, Krungthai Bank, Kasikorn Bank and Siam Commercial Bank.

VP of Indochina Expansion and MD of IBM Thailand, Patama Chantaruck, said: 

Bank of Thailand’s success with the government savings bond project is the latest example of how blockchain technology can redefine the way businesses operate by simplifying complex processes resulting in fast, transparent, secured and efficient multiparty collaboration. IBM is proud to bring our world-class blockchain platform and IBM Cloud to support Bank of Thailand, and work side-by-side with them in achieving this important milestone for Thailand’s financial industry”.

BoT now plans to extend the use of this platform to all other government bonds for both retail and wholesale investors.

Although IBM’s DLT is not a truly decentralized blockchain, it is still able to provide a high degree of security, particularly from attempts to tamper with data. In this way, subscribers of government bonds can be sure of what they are buying. 

 

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".
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