Thailand’s government has confirmed that the Thai Bond Market Association (TBMA) is currently developing a state-run token to ensure payments and the clearing of corporate bonds, according to BTC Manager.
The token, “Bond Coin”, according to a Bangkok Post report, will be built over a private blockchain and will ensure transactions between pre-selected participants such as regulators and bond issuers, confirming earlier reports that a securities body in the country was considering such a move.
The coin is due for launch in August 2019 and will reportedly speed up payment processes for participants, providing them with up-to-date payment sheets, including interest rates and other essential transaction information.
The project will be introduced in three phases, including the verification of bonds, through a “bond registrar subscription system” using smart contracts at the initial stage. This will be followed by adding bond deposit servicing and system development at the second stage, which is due for completion by early 2019.
The third and final phase will reportedly combine the earlier development stages incorporating a clearing and settlement infrastructure. The completed system is said to be capable of unlocking the clearing of corporate bonds from two days to less than 24 hours, cutting out middlemen by using the new coin.
The Thai government is continuing its regulatory process for cryptocurrency and blockchain through regulators such as Thailand’s Security and Exchange Commission (SEC). New ICO regulations have recently come into effect which stipulates that ICOs must be paired with specific cryptocurrencies, which as yet haven’t been named by the SEC.
Unconfirmed reports are that the list will comprise Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Ripple and Stellar due to their convertibility to the Thai fiat currency baht, reports Bloomberg.
It is suggested that such clarification of guidelines and rules for conducting ICOs by the SEC will at least bring Thailand into line with its East Asian competitors such as Japan, South Korea and Taiwan as it develops its crypto space with an enthusiastic eye on its fintech future.
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