Siam Commercial Bank (SCB), Thailand’s fourth largest and oldest financial institution, has become the country’s first financial institution to offer stablecoin-based cross-border payment and remittance services, Nikkei Asia reported in October. This was reported on the 16th.
The stablecoin remittance service is provided in partnership with fintech company Litenet. The move aims to reduce transaction fees and provide customers with faster international money transfers.
The introduction of stablecoin-based services will enable SCB customers to send and receive payments globally, 24 hours a day, 7 days a week. The service was trialled through the Bank of Thailand’s Digital Asset Sandbox to ensure the system meets regulatory standards and has flexibility for future expansion.
The adoption of stablecoin payments by SCB signals the growing importance of blockchain technology in reshaping global finance, especially in regions where traditional banking systems struggle to meet the needs of their populations. It’s highlighted.
The move is expected to accelerate the development of Thailand’s digital economy and position SCB as a key player in the future of financial services.
Stabelcoin adoption skyrockets
According to Chainalysis’ latest Global Adoption Report, stablecoins have become an important tool for cross-border payments, especially in regions where currencies are unstable and transfer costs are high. Its use is increasing in countries such as Brazil, Nigeria, and India, where traditional banking systems often fail to meet the needs of their citizens.
Stablecoins currently account for 43% of all cryptocurrency transactions in sub-Saharan Africa and play an important role in remittances and trade. With Nigeria in particular emerging as the world’s second-largest cryptocurrency adopter, stablecoins are providing a lifeline for those seeking a stable alternative to local currencies.
The growing role of stablecoins in financial inclusion is not without its challenges. Some experts have expressed concerns about “crypto dollarization” in certain regions, saying that the spread of stablecoins could weaken regional monetary policy.
Nevertheless, the report found that over 70% of respondents said they plan to use stablecoins in the next 12 months due to their efficiency, speed, and ease of use in cross-border payments, payroll, and remittances. He pointed out that the amount is expected to increase.
mentioned in this article
Source link
