The developers of the programme hope that it will remove some of the friction inherent to cross-border transactions. The Thai bank believes the programme will help deliver new and innovative solutions to its customers.
According to a recent report major banking group in Thailand has become the of the country’s financial institutions to join the blockchain pilot programme of a major American multinational financial services corporation, called B2B Connect.
B2B Connect is a blockchain based cross-border payment platform. The corporation that created it envisions a system that offers three key capabilities. Firstly, transparency by providing real-time notification and finality of payment for banks and their clients. Secondly, security as a result of cryptographically linked transactions provides an immutable record. And finally, trust as all parties are known and will work on a private blockchain.
The corporation hopes this will remove some of the friction inherent to cross-border transactions.
The original aim was a commercial launch in mid-2018 but the program is currently still in the pilot phase.
Since 2016 the payment giant has been working on the platform with a blockchain tech firm that was recently acquired by Stellar. So the big question is what happens next concerning technology?
Thailand’s banking group
The major Thai bank’s participation will mean that it joins other banks announced last year. These include Commerce Bank in the United States, South Korea’s Shinhan Bank, Union Bank of Philippines and Singapore’s United Overseas Bank.
The corporation’s Country Manager was quoted to have said that building on the enterprise blockchain technology, the B2B Connect programme is a new transaction platform designed for the exchange of high-value international payments between participating banks on behalf of their corporate clients. Managed by the American company’s end-to-end, B2B Connect combines the corporation’s core capabilities in security, governance and distributed ledger technology.
The First Senior Vice President of the Thai bank stated that the bank is dedicated to delivering new and innovative solutions to its customers. Through its relationship with the American multinational financial services corporation, the bank is excited to be participating in the B2B Connect pilot which is the first step of a new paradigm in reimagining cross-border payment transactions.
As the first mover in Thailand, the bank’s leaders stated that it will be a leader in the industry which benefits the bank’s enterprise clients in terms of more secure payment.
Thailand, a critical place for blockchain tech
These moves to adopt blockchain in the country further prove that Thailand is a critical country for the technology.
According to a report published earlier this month, Thailand’s government is already mapping out its own central bank digital currency.
This is just one of the numerous examples of how Thailand has emerged as one the most interesting cryptocurrency and blockchain countries in Southeast Asia in 2018.
Since the start of the year, the Thai government has become increasingly outspoken and welcoming of cryptocurrency projects and exchanges. In just a few months, Thai regulators have made notable progress, from setting up cryptocurrency company licenses to permitting exchanges and ICOs.
More importantly, the country has attracted foreign companies by providing clear and explicit guidelines for foreign blockchain companies to operate. It’s a pattern that we are seeing across Southeast Asia and one that blockchain and cryptocurrency start-up founders should take note as they think about global expansion.
Not only has it become open to private cryptocurrency companies, but the Thailand government is also testing its own blockchain technologies. For example, it has allowed the Thai Bond Market Association to create a “BondCoin,” a custom token on a private blockchain between permissioned participants including issuers and investors alongside regulators and registered firms.
As Thailand proves, the ground is changing rapidly on which countries are most open for blockchain and cryptocurrency business, and adapting to these changing market dynamics is critical to the success of start-ups and companies in the space.
We release new articles daily on trending topics within technology and the public sector. Subscribe to have weekly digests of our articles conveniently sent to your email address.
Mövenpick Hotel and Convention Centre KLIA
One Farrer Hotel
Sheraton Towers Singapore
Putrajaya Marriott Hotel
Marina Bay Sands, Singapore
JW Marriott Jakarta