Siam Commercial Bank Introduces Stablecoin Solution for Cross-Border Payments

Bitget App

Trade smarter

Insidebitcoin2024/10/20 21:31

By:Insidebitcoin

Siam Commercial Bank (SCB), one of the largest banks in Thailand, has launched a stablecoin-based cross-border payment solution, which includes remittance services. This new initiative successfully emerged from the regulatory sandbox of the Bank of Thailand in October 2024.

SCB’s Stablecoin Initiative: A Step Forward in Cross-Border Payment Innovation

The bank collaborated with SCB 10X , its innovation and venture arm, as well as Singapore-based fintech company Lightnet , for the development of this solution. Additionally, custody technology for the project is being provided by Fireblocks. While inquiries were made regarding the specific public blockchain and stablecoins involved in the project, no details were available at the time of writing.

In traditional cross-border payment systems, banks often need to maintain pre-funded Nostro accounts in the destination country. The introduction of stablecoins may eliminate the need for such accounts. Furthermore, stablecoin transactions offer significant cost advantages, as they tend to be much cheaper and can be processed around the clock.

According to Thanawatn Kittisuwan, First Executive Vice President and Head of Digital Juristic & Payment at SCB:

By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable, and accessible for everyone.

Initially, this stablecoin solution is aimed at consumer transactions. However, SCB plans to extend its services to corporate clients in the near future. Interestingly, the big three Japanese banks are exploring similar cross-border payment solutions, although they tend to obscure the involvement of stablecoins, allowing clients to initiate payments in the usual manner.

In the past, SCB Tech X also took part in a trial involving the use of stablecoins on Hedera Distributed Ledger Technology (DLT). This trial included several other banks, such as Korea’s Shinhan Bank, a bank from Taiwan, and South Africa’s Standard Bank, which participated as an observer.

Stablecoins as a Store of Value in Developing Economies

Stablecoins, particularly those pegged to the U.S. dollar, are gaining popularity in developing nations where local currencies may lose value. By using stablecoins, residents can protect their purchasing power, making them an attractive option for remittances. This trend is especially visible in regions like Sub-Saharan Africa, where a substantial portion of crypto transactions involves stablecoins.

A report by Chainalysis highlighted the growing adoption of stablecoins for remittances in countries facing currency devaluation. For instance, in Venezuela, where inflation is rampant, over half of the digital assets sent as remittances are stablecoins. Other Latin American countries like Argentina, Colombia, and Brazil are seeing similar trends, with stablecoins increasingly used for cross-border payments.

Additionally, a March 2024 report by Mastercard showed that remittances to South America are growing faster than in any other region. This underscores the global shift toward blockchain assets, including stablecoins, which are expected to play a key role in the region’s evolving digital economy.

In summary, SCB’s adoption of stablecoin-based payments is a major development in Thailand’s financial sector. The bank is leveraging blockchain technology and working with fintech partners to create more efficient, affordable cross-border payment options for both individual and corporate clients. This step positions SCB at the forefront of digital asset adoption and financial innovation.

FreeDum Fighters: A Political Satire with High Growth Potential in the Crypto Space

FreeDum Fighters is a cryptocurrency project that has been gaining significant attention during its presale phase, positioning itself as a promising investment with a unique, politically themed concept. At a price of just $0.00005 per token, it has attracted those seeking to invest in a project that combines humor and politics with the possibility of substantial growth.

With the U.S. presidential election approaching, FreeDum Fighters has designed its roadmap to capitalize on the political atmosphere, aiming to increase its traction during this high-interest period. This strategic alignment with the election season enhances its appeal, as it taps into a politically charged environment to gain momentum and visibility.

The project centers around two main characters, Kamacop and Magatron, who are satirical representations of real-world political figures, Kamala Harris and Donald Trump. These figures are not only a playful commentary on current politics but also the foundation of the project’s storyline. Over time, the developers plan to expand this narrative by introducing additional characters and evolving the storyline, creating ongoing excitement and engagement for both the community and investors.

A key aspect that adds to FreeDum Fighters’ utility is its distinctive staking mechanism. Investors can stake their $DUM tokens in support of their favorite character, and rewards are distributed based on the character’s popularity. This innovative staking model provides an interactive and enjoyable experience for participants while offering rewards through airdrops and point systems. This setup has already attracted a growing number of investors who see potential in this audited presale, believing it could become one of the top-performing cryptocurrencies in the current market.

The evolving narrative and character-driven storyline are expected to keep the project fresh and engaging, which could significantly increase investor interest and fuel long-term growth. With a mix of humor, political satire, and an innovative reward system, FreeDum Fighters has carved out a niche in the crowded crypto market, positioning itself as one of the most promising new projects for those seeking both entertainment and financial returns.

Buy FreeDum Fighters Token