Key Takeaways:
- Siam Commercial Bank (SCB) launches 24/7 stablecoin remittance services in partnership with Lightnet, offering lower fees and enhanced financial inclusion.
- SCB’s stablecoin service, tested in the Bank of Thailand’s regulatory sandbox, is part of a growing trend in regions with depreciating local currencies.
- Stablecoins now account for 43% of crypto transaction volume in Sub-Saharan Africa, with similar adoption patterns in Latin America, according to recent reports.
Siam Commercial Bank (SCB), Thailand’s oldest bank, has launched a stablecoin-based remittance service in collaboration with fintech company Lightnet.
This service allows clients to send and receive cross-border payments 24/7, with reduced transaction fees, making it particularly appealing for recipients of remittances from stronger currencies.
SIAM COMMERCIAL BANK PIONEERS STABLECOIN-BASED CROSS-BORDER PAYMENTS IN THAILAND
— BSCN (@BSCNews) October 17, 2024
– Siam Commercial Bank (SCB), Thailand’s oldest commercial bank, became the first institution in the country to offer stablecoin-based cross-border payment and remittance services.
– This… https://t.co/MuHHtEYll1 pic.twitter.com/xk04ujfBJd
Lightnet’s CEO emphasized that stablecoins offer financial inclusion by lowering transaction costs and benefiting retail, corporate, and institutional clients.
SCB successfully tested the service in the Bank of Thailand’s regulatory sandbox, which allows for controlled digital asset experimentation.
Stablecoins are increasingly used as secure stores of value in regions where local currencies are depreciating, such as Sub-Saharan Africa and Latin America.
Thailand’s Siam Commercial Bank introduces stablecoin service for international payments https://t.co/T8Of9dnKVy
— The Block (@TheBlock__) October 17, 2024
A Chainalysis report showed that 43% of crypto transactions in Sub-Saharan Africa involve stablecoins, and in Venezuela, many digital remittances also use stablecoins.
Mastercard’s 2024 report highlighted that remittances to South America are growing rapidly, with stablecoins driving the transition toward a digital economy.
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