Thai Bank Adding Two New Currencies
Ripple helping banks to save money
Siam Commercial Bank, Thailand’s fourth largest bank, announced that it would be adding the Euro and Sterling Pound to its Ripple powered blockchain remittance platform.
Ripple helps banks, and their clients save money, and time on money transfers. Using Ripple saves millions in fees annually, and speeds up the process from days to a mere 3-5 seconds.
In the near future, retail clients of SCB should be able to send payments with the Euro, and Sterling Pound to anywhere around the world for much less, and in real time. Currently, a client would have to wait until the following business day (at the bare minimum) for these types of funds to reach its final destination.
The service for European currencies will initially be available for retail clients with inbound cross-border money transfers. The bank is searching for new correspondent banks in the Ripple network.
SCB’s Chief Strategy Officer Mr. Arak Sutivong said, SCB has been testing the cross-border remittance through blockchain (currently only available for the Japanese Yen) in the Bank of Thailand’s regulatory sandbox since last June. It is waiting for the Central Bank’s approval to allow it’s cross-border remittance service to exit the sandbox. Because the services use the same technological platform, it may not be necessary to experiment in the sandbox again if the move just entails using other currencies.
Mr. Arak, gave the major uptick of payments using Euros and Sterling Pounds to Thailand from retail customers, as a reason for the blockchain powered retail offering.
This should add more value to SCB’s stock. It closed at 149THB on Tuesday, that is up 9 from a 52 week low of 140THB. Could be showing signs that it could be a good time to buy, or that it would at least be prudent to hold any SCB stock that you may have.
Author: Steven Johnson