Recently, Bank of Ayudhya (BAY) has disclosed a solution based on blockchain to transfer funds between Thailand and Laos. The introduction of cross-border trade and funds transfer helps in minimizing transaction time.
The Bank of Thailand has approved the BAY for developing the blockchain technology between Thailand and Laos. The Krungsri Blockchain Interledger enables the transactions in US dollars and Thai Baht currencies for trading and making cross-border payments.
The head of retail and consumer banking of Krungsri, Dan Harsono, said that BAY had introduced a financial innovation to help the two countries in bilateral trading. This solution is to grow the trade and investment between Thailand and Laos seamlessly.
There are two branches of BAY in Laos i.e., Vientiane and Savannakhet. Under the Krungsri Leasing brand, BAY provides the hire purchase and loans on installments for the retail as well as corporate customers in Laos.
Mr. Harsono said that BAY is looking initiative in Laos because of its confidence in the economic potential of Laos. According to the research forecasts of Krungsri, the GDP of Laos will increase by 6.4% in 2019 and 6.5% in 2020. He continued that Thailand is one of the top foreign investors in Laos. If the Krungsri Blockchain Interledger is introduced in the country than it will expand and boost the business sectors of both the countries. The blockchain service will help in winning the trust of Thailand as well as other foreign corporate customers.