Siam Commercial Bank (SCB) has launched Thailand’s first cross-border payment system utilizing stablecoins, developed in partnership with SCB 10X and Lightnet. This initiative aims to streamline international transactions, allowing for quicker and more efficient payments through the use of stablecoins and blockchain technology.
What Makes This Payment System Innovative?
According to SCB’s press release, this payment system is a major advancement in the modernization of cross-border transactions. By linking stablecoins to the US dollar or gold, the new service offers a fast, cost-effective, and efficient method for transferring funds internationally.
How Secure is the New System?
Security is paramount in this new payment method, with Fireblocks providing advanced custody solutions to protect digital assets. This collaboration ensures that transactions remain secure, minimizing risks associated with theft and loss.
- 24/7 availability allows customers to send and receive payments at their convenience.
- Ability to transact in local currencies facilitates a smoother transition to digital assets.
- Regulatory support enhances the credibility and safety of digital asset transactions.
SCB plans to extend this service to businesses after its initial launch for retail users. By eliminating traditional financing hurdles and enhancing operational efficiency, this solution aims to improve cash flow management for companies involved in global trade. The rollout of this stablecoin-based system represents a crucial step in the digitization of financial services in Thailand, setting the stage for future innovations in the sector.