BAY's blockchain assists cross-border funds transfers
published : 12 Nov 2019 at 04:01
newspaper section: Business
Bank of Ayudhya (BAY) has introduced a blockchain solution for transferring funds between Thailand and Laos, significantly reducing the time needed to make money transfers, to promote cross-border trade.
The Krungsri Blockchain Interledger facilitates transactions in both US dollars and baht to support Thai and Lao cross-border payments and trade.
BAY is the first bank to receive approval from the Bank of Thailand that has developed blockchain technology between Thailand and Laos.
"As trade and investment between Thailand and Laos continue to grow, BAY has deployed financial innovation to support bilateral trade between the two countries," said Dan Harsono, Krungsri's head of retail and consumer banking.
"The Krungsri Blockchain Interledger facilitates Thai and Laos entrepreneurs transferring funds within a few seconds, a process that previously took 1-3 business days.
"The service is capable of handling transactions both in baht and US dollars."
BAY has two branches in Laos -- Vientiane and Savannakhet -- and provides hire purchase and instalment loans for retail and corporate customers in Laos under the Krungsri Leasing brand.
"BAY has confidence in Laos' economic potential. Krungsri Research forecasts Laos' GDP will grow by 6.4% in 2019 and 6.5% in 2020," Mr Harsono said. "Thailand is among the top foreign investors in Laos. The introduction of Krungsri Blockchain Interledger in the country will propel business sectors in both countries to expand and accelerate."
Earlier, Krungsri Blockchain Interledger was successfully deployed in Thailand's first real-time international funds transfer for oil trading transactions between IRPC and its Laos business partner, Bua Sawan Energy.
The transfer helped the blockchain service win trust from leading Thai and foreign corporate customers, he said.