The time of bank transfers powered by blockchain technology is slowly but safely taking shape!
- The first blockchain-enabled instant remittance service between Japan and Thailand is rolling out today. Launched by Thailand’s Siam Commercial Bank (SCB) in collaboration with Japan’s SBI Remit over Ripple’s blockchain, the service will help establish a new payments rail between the two countries. The Thailand-Japan remittance corridor sees approximately $250 million transferred each year, with some 40,000 Thai nationals living in Japan.
The famous 2 – 5 seconds
The commercial blockchain feature will enable individual funds transfers from Japanese Yen to Thai Baht between the two banks.
a transaction, once triggered, will see funds deposited in the recipient’s savings accounts in Thailand within “two to five seconds”, compared to the current ‘2-business days’ norm for payments between the two countries. – Siam Commercial Bank
- SBI Remit director Nobuo Ando underlined the need to enhance existing remittance services to make them faster and cheaper for its retail customers.
“In this case, Ripple was impressive in concept and turned out to be more so in practice,” he added. “Furthermore, we can expect to have more favorable foreign exchange opportunities as Ripple’s network expands.”
To this end, the Siam Commercial Bank – incidentally Thailand’s first bank – is also planning a rollout of the Ripple-powered blockchain service to other key remittance corridors across North America, Europe and Asia Pacific.
Blockchain Bank Transfers on the Horizon?
Ripple’s blockchain, the Ripple Consensus Ledger (RCL), has previously been used in a number of remittance pilots including an instant-money transfer between Spain and Mexico in April this year. Back in July 2016, a trial of a Ripple blockchain payment from Canada to Germany took 20 seconds whereas a separate cross-border transfer from Standard Chartered took 10 seconds in September.
Today’s blockchain remittance roll-out is touted by Ripple as “the first commercially-available remittance service” powered by its blockchain.