Blockchain technology is gaining traction. Making this evident is the recent incident of Shinhan Bank and SCB TechX successfully completing the stablecoin remittance. The task was achieved on the Hedera Network, which is known for being an open-source public network. Specifically speaking, the task was related to achieving success in the stablecoin remittance proof-of-concept pilot. Hedera drives efficiency and eco-friendliness, making it an ideal candidate for the said purpose.
Shinhan has called this a major milestone. For all the right reasons, one might assume as the success factor is heavily based on achieving real-time foreign exchange and real-time settlement. The integration was achieved across the following:-
- New Taiwan Dollar (NTD)
- Thai Baht (THB)
- South Korean won (KRW)
Participants are likely to expand in the times to come considering PoC is EVM compatible. The only criterion that they must meet is of being an issuer of a stablecoin. The current milestone achieved in the test environment aligns with the production capabilities.
Simultaneously, the goal is to promote financial inclusion by reaching out to the communities that have been neglected by the traditional financial system.
This is not the first time that Shinhan Bank has attempted to test the core competencies of Blockchain technology. It is credited with successfully partnering with Standard Bank for the purpose of stablecoin remittances. Shinhan Bank is looking to have cross-border payments that are efficient and low-cost on top of being seamless.
Stablecoins have been chosen for the project as they feature a reliable way to transfer value from one person to another, irrespective of their geographical location. Trirat Suwanprateeb, the Chief Executive Officer of SCB TechX, has hailed stablecoins for being fast and low-cost, also acknowledging their reliability when it comes to transferring value. Trirat has further stated that this will help them achieve financial inclusion and better access to services in underprivileged communities.
Byunghee Kim, the Chief of the Blockchain Division at Shinhan Bank, has called this an important step forward in the mission of achieving faster cross-border payments. Kim has added that they are pleased to partner with Hedera in the quest to explore the capabilities of stablecoins when it comes to fueling transactions across international regions.
Kim has also said that they are pleased to have showcased how intermediaries can be eliminated by utilizing the EVM-compatible technology of Hedera. The benefits of financial services will span across individuals and institutions alike.
While the announcement is specific to Shinhan Bank, SCB TechX, and Hedera Network, it is very likely that the milestone will be looked upon by all the other players in the financial market. A lot of it is to do with exploring distributed ledger technology and the potential of Blockchain. What Shinhan Bank demonstrates in the time to come would later be replicated by others in the ecosystem.