Siam Commercial Bank partners with Litenet to introduce 24/7 stablecoin remittance service, significantly reducing global payment fees. This move puts SCB at the forefront of innovation in cross-border transactions and promises faster and more cost-effective money transfers for customers.
SCB partners with Lightnet to offer 24/7 stablecoin remittances
Siam Commercial Bank (SCB), Thailand’s oldest commercial bank, has announced a partnership with fintech company Lightnet to provide stablecoin international payment and remittance services to its customers.
According to Cointelegraph, by integrating with stablecoin services, customers will have low-cost, 24-hour access to send and receive cross-border transactions.
Reduced transaction fees for cross-border payments
For those receiving remittances from higher-value currencies, stablecoins are a good option because of their low transaction fees. According to CEO Tridbodi Arunanondchai, all Lightnet customers will benefit from tokenized fiat currency equivalents.
“This project will also foster financial inclusion due to its low per-transaction capital requirements. In addition to this, the project will also offer a unique value proposition for retail, corporate and institutional customers.”
Regulatory Sandbox Pilot in Thailand
The new stablecoin service was developed by the bank within the Bank of Thailand’s regulatory sandbox, an initiative that allows banks to test digital assets with less stringent rules and regulations without being exposed to the threat of legal action. It was introduced on a trial basis.
Adoption of stable coins due to currency devaluation
Stablecoins denominated in US dollars are gaining popularity among people living in poor countries looking to protect their purchasing power from rapid depreciation of their currencies.
Stablecoins now account for more than 43% of all cryptocurrency transactions in sub-Saharan Africa, according to new research from Chainalysis. According to Eric Jardine, head of cybercrime research at Chainalysis, who spoke to Cointelegraph, there is a strong correlation between currency devaluation and the adoption of stablecoins.
Reliance on stablecoins increases in Latin America
Chainarise’s results appear to be supported by data from Latin America. In Venezuela, which has suffered a severe currency devaluation, crypto payments accounted for 9% of remittances in 2023.
According to Chainalysis, more than half of the digital assets sent to Venezuela as remittances that year were stablecoins. Mexico, Argentina, Colombia, and Brazil all also exhibit this pattern.
South America’s remittance growth outpaces other regions
A report released in March 2024 by payment giant Mastercard found that remittances to South America are growing at a faster pace than other regions of the world.
Blockchain assets such as stablecoins will continue to drive the transition to a digital economy, credit card and payment providers say.
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