The Siam Commercial Bank in Thailand has announced plans to develop a stablecoin remittance solution by partnering with firms with expertise in the field.
Leading media dailies in Asia have highlighted a Thai bank’s signals regarding the adoption of crypto. The Siam Commercial Bank, the oldest commercial bank in the country, has announced plans to develop a stablecoin remittance solution. It would be helpful in cross-border remittances and transfers for its clients. Meanwhile, a fintech firm, Lightnet, has partnered with the Siam Commercial Bank for the project.
There would be various advantages to the new stablecoin services. Clients would be able to transact 24*7, with much lower transaction costs. It would especially benefit transactions involving high-value currencies. Moreover, it could also be an enabler for financial inclusion.
The CEO of Lightnet highlighted the latter and said, “This project also promotes financial inclusion as there is a lower capital requirement per transaction. Beyond this, the project also provides unique value propositions to retail, corporate, and institutional clients.”
The Bank of Thailand has also indirectly become a part of the project. Its regulatory sandbox tested the new feature of the Siam Commercial Bank. The ongoing lead for stablecoins services across the world could be a sign of growing acceptance of the crypto use case.
Stablecoins are pegged to stable assets like fiat currencies and offer several advantages that make them attractive to investors and traders. One key benefit is their price stability. Unlike traditional crypto tokens, which can experience significant price fluctuations, stablecoins maintain a relatively constant value. It reduces the risk of substantial losses.
This stability is achieved through various mechanisms, such as holding reserves of the underlying asset or using algorithmic models to maintain price parity.
USDC, a popular stablecoin, is often a key medium of exchange today. While it extends the stability of the USD, it also leverages blockchain technology.
Check out Blockverse for all crypto updates from around the globe!
