Blockchain technology has shown itself capable of disrupting and revolutionising a vast array of industries. One of such ecosystems that the DLT has been revolutionizing is the global banking sector.
In the latest development, a group of financial institutions including Mitsubishi Group, MUFG Bank, and the Singapore Standard Chartered bank have used the Bank of Thailand’s (BOT) blockchain sandbox to execute a cross-border payment.
As stated in a press release, the parties involved in the pilot tested the fastness and efficiency of blockchain-based payments by sending money from a Mitsubishi group subsidiary in Thailand to another Mitsubishi Group subsidiary in Singapore that operates a Standard Chartered account. Kungsri’s Interledger technology facilitated the operation.
Commenting on the highly successful operation, head of the Krungsri Consumer Group and the Digital Banking and Innovation Division, Thakorn Piyapan reiterated that:
“The technology-based transaction helps enhance their subsidiaries financial liquidity toward greater flexibility and efficiency.”
Banks in the Asian region are all clamouring to have the most efficient blockchain systems for facilitating international payments.
Earlier in May, Omanis banking heavyweight, Bank Dhofar announced it had successfully integrated the Ripple blockchain into its operations to enable it to handle lightning fast cross-border payments.
“We are delighted to be the first bank in Oman to join RippleNet and access more than 100 of its member banks and other financial institutions utilizing blockchain for instant payments. With this, we can provide instant, frictionless and secure cross-border money transfers within seconds, with end-to-end visibility over the journey of the payment,” said chief Information Minister at BankDhofar, Tariq Taha.
In another forward-thinking manoeuvre, Japan’ biggest bank and fifth largest bank in the world by total assets, MUFG announced it had inked a partnership deal with Akamai Technologies, which is a US-based cloud computing firm. Akamai will develop a blockchain-based global payment system for MUFG.
MUFG also announced recently that its putting preparations in top gear to launch its cryptocurrency in 2019.
All these have been possible due to Thailand’s somewhat soft stance on the nascent crypto ecosystem. The nation has regulated its cryptospace by categorising digital currencies as “digital assets and digital tokens,” hence, they fall under the purview of the Thai Security and Exchange Commision.
“The SEC Thailand encourages access to funding for businesses, including high potential tech startups, and realises the potential of ICO in answering startups’ funding needs. In cases where an ICO constitutes an offering of securities, the issuer will need to comply with applicable requirements under the SEC Thailand’s purview,” said the SEC.