Earlier this week, Omise — the venture-backed startup behind the Ethereum-based project OmiseGo — met with Ethereum co-founder Vitalik Buterin and representatives from the Central Bank of Thailand to discuss the future of Thailand’s economy and its financial sector.
Founded in 2013, Omise has focused on building a secure, efficient payments infrastructure using blockchain technology. Over the past several years the company has expanded across Asia and attracted funding from leading regional investors. Its team includes respected industry contributors such as Joseph Poon, co-author of the bitcoin Lightning Network paper, and Ethereum co-founders Gavin Wood and Vitalik Buterin. Omise’s stated goal is to provide the infrastructure required for individuals and organizations to use the Ethereum blockchain to facilitate a wide range of financial activities:
“Through the OmiseGO network connected to the Ethereum mainnet, anyone will be able to conduct financial transactions such as payments, remittances, payroll deposit, B2B commerce, supply-chain finance, loyalty programs, asset management and trading, and other on-demand services, in a completely decentralized and inexpensive way.”
During the meeting, executives and representatives from the Bank of Thailand explored the potential of integrating Ethereum and other blockchain-based services provided by firms like Omise to enhance the country’s existing banking systems and financial platforms.
Met the Central Bank of Thailand together with @VitalikButerin today; discussed the future of the Thai economy #Ethereum #OmiseGO #Plasma pic.twitter.com/c8IlmBzqnn
— OmiseGO (@omise_go) August 15, 2017
The decentralization of infrastructure and data-dependent systems can be complex without suitable technology. By leveraging Ethereum, the Bank of Thailand and partner banks can pilot blockchain solutions for financial processes that traditionally require intensive manual work and verification.
Recently, Kasikornbank (KBank), Thailand’s largest commercial bank, announced a partnership with IBM to adopt Hyperledger Fabric for processing letters of guarantee. KBank said blockchain can establish highly secure networks for document filing and retrieval, streamlining issuance and verification workflows.
“Blockchain technology is applied to create highly secure networks of document filing and retrieval. As Thailand’s largest issuer of Letters of Guarantee, KBank is working with IBM to implement this innovative technology to further define and articulate our leadership in this market,” said Pipit Aneaknithi, president of KBank.
Parnsiree Amatayakul, IBM Thailand’s managing director, highlighted blockchain’s role in Thailand’s growing economy and financial services sector. He stressed the need for blockchain solutions that deliver transparency, security and decentralized control for banks and their customers.
“As IBM continues to support KBank’s important initiatives in Blockchain, the value this technology can bring to the bank and its clients is becoming increasingly clear and can redefine the way businesses in the region operate and grow,” Amatayakul added.
With KBank testing Hyperledger Fabric at commercial scale, the Bank of Thailand is adopting a more innovative stance toward modernizing the country’s financial services. The government’s openness to evaluating Ethereum’s applicability signals a willingness to address inefficient legacy systems and consider blockchain-based alternatives.
Across Asia, several governments — including China, South Korea and Japan — are exploring how Ethereum and other blockchain platforms could improve public and financial infrastructure. For instance, China has investigated concepts to digitize portions of its national currency using blockchain technology. If the Thai central bank moves forward with Ethereum-based experiments, adoption in Thailand could spur broader demand for Ethereum across the Asia-Pacific region.