Blockchain technology has developed more and more functions over the years. Not only serving for the creation of new cryptocurrencies like Bitcoin. If not also as a mechanism for the design and launch of decentralized applications, smart contracts and a myriad of products and services based on block chains. Thanks to this, governments like that of Thailand use the Blockchain to sell debt bonds.
Blockchain beyond cryptocurrencies
Despite the fact that they became known thanks to cryptocurrencies, and especially due to the boom experienced by Bitcoin. The truth is that Blockchain technology has many functions beyond virtual currencies. Especially in the finance sector, where blockchains have substantially increased the flexibility and transparency of international financial transactions.
And, now thanks to the Blockchain, operations that previously took several days to be executed with very high commissions. They can be done almost immediately using blockchains. Substantially reducing the costs associated with sending money across borders.
This is not to mention the possibilities that the Blockchain opens up for the creation of documents and the deposit of assets. Well, being practically impossible to hack, the property titles that are created in a chain of blocks cannot be falsified. This is useful both for registering possessions such as a house or building land, and for the issuance of financial assets such as Thai debt bonds.
Thus, the government of Thailand has decided to take a step forward in the process of adopting Blockchain technology. Launching its own government debt bonds through a blockchain created by the country’s central bank. As announced by this body through a press release.
In this way, in the first test of the Blockchain, Thailand would have sold bonds worth 50 million Baht over a week, equivalent to 1.6 billion dollars. In what would be just the first step in a much more ambitious plan to use the blockchain in government financial operations.
Thanks to this work, Thailand could significantly reduce operating costs associated with selling products such as its debt bonds. Also announcing the Thai Ministry of Finance, that the money obtained from the bonds sold through the Blockchain would be used to finance the deficit in the budget of the Asian country.
With this, Thailand would enter the group of countries that such as China, Russia and the United States are experimenting with Blockchain technology to improve their financial systems. Working on creating your own government virtual currencies or on simpler projects like issuing Thai debt.