The Thai government is to introduce a scheme for letters of credit (L/Cs) issued by the state to be processed on a blockchain platform.

The scheme is one of three blockchain platforms that the government aims to introduce soon.

Krungthai Bank

The L/C scheme follows the signing of a memorandum of understanding (MoU) between Thailand's ministry of finance and Krungthai Bank. The bank is providing the technology solutions for the L/C blockchain platform.

While Krungthai is listed on the Stock Exchange of Thailand, its majority shareholder is the ministry of finance, which has routinely used the bank to support government initiatives.

More blockchain schemes

The two other blockchain schemes involve the issuing of public savings bonds and value added tax (VAT) refunds for tourists.

Foreign tourists visiting Thailand will be able to claim refunds of any VAT levied on purchases via a blockchain-based app and have the funds sent straight to their credit card or mobile payment app.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.