Siam Commercial Bank Introduces Stablecoin Cross-Border Payments

According to Cointelegraph, Siam Commercial Bank (SCB), Thailand's oldest commercial bank, has announced the launch of stablecoin cross-border payment and remittance services in partnership with fintech company Lightnet. This new service will enable clients to conduct cross-border transactions 24/7 while reducing transaction costs. The reduced fees associated with stablecoin transactions make them an appealing option for recipients of remittances from higher-value currencies. Lightnet CEO Tridbodi Arunanondchai emphasized the benefits of tokenized fiat equivalents, noting that the project promotes financial inclusion by lowering the capital requirement per transaction. He also highlighted the unique value propositions this service offers to retail, corporate, and institutional clients. The bank's stablecoin services were tested through the Bank of Thailand's regulatory sandbox, allowing financial institutions to experiment with digital assets under relaxed regulations without the risk of regulatory lawsuits. Stablecoins are increasingly being used as a store of value in developing nations. A recent report from Chainalysis revealed that stablecoins now account for approximately 43% of all crypto transaction volume in Sub-Saharan Africa. Eric Jardine, cybercrimes research lead at Chainalysis, noted a strong correlation between currency devaluation and stablecoin adoption. Data from Latin America supports these findings. In Venezuela, where currency devaluation is severe, crypto payments accounted for 9% of remittances in 2023, with over 50% of the digital assets sent as remittances being stablecoins. This trend is also observed in Argentina, Colombia, Brazil, and Mexico. In March 2024, Mastercard published a report analyzing remittances to South America, revealing that remittances to the continent are growing faster than in any other region. The report predicts that blockchain assets like stablecoins will continue to gain market share and drive the shift towards an increasingly digital economy.