It is now possible to directly transfer baht-Yuan across Thailand and China as Kasikornbank, the fourth biggest bank in Thailand, in terms of assets h
It is now possible to directly transfer baht-Yuan across Thailand and China as Kasikornbank, the fourth biggest bank in Thailand, in terms of assets has partnered with Chinese fintech firm international Business Settlement to form a blockchain platform that allows for Baht-Yuan transfers.
Based on a report published by Nikkei, this cutting-edge banking system will bring a new dawn in Thailand and China as it will allow for direct settlement of transfers from Yuan and Baht and vice versa without the need for converting the currencies to USD first. Recognized as the world’s most popular and used currency, the USD serves an important role when handling cross-border international settlements and remittances.
In his speech, Bantthoon Lamsam, the current Kasikornbank’s Chairman, confirmed that IBS is adequately prepared network-wise and technology-wise to enable international settlements without necessarily needing to depend on the U.S. dollar.
In reference to blockchain platform created by IBS, the system will be the perfect alternate to the widely utilized SWIFT settlement system. Chinese fintech claims that their blockchain platform will be a bit more cost-effective, safer and faster when in comparison with the current SWIFT network.
The blockchain technology comes at the most expected time as trade between china and Thailand is at its peak. Statistics show that China ranks second as Thailand’s favorite trade partner followed by Japan and United States. Likewise China ranks as the second leading source of imports from Thailand. The estimated annual trade between China and Thailand now stands at 2.3 baht an amount equivalent to 64 million dollars. Recent statistics show that of all tourists who visit Thailand each year, 20% are from China. Hence it is wise to say that the baht-Yuan corridor is going to benefit significantly from the fintech-powered system by blockchain technology.
The San Francisco-based blockchain platform Wyre raised 5.8 million dollars in the last series A round which means the China-US payments corridor is too undergoing a great transformation. Wyre is faster and more reliable as it promises to make transfers between Yuan and USD possible within six days something which isn’t possible with traditional settlement intermediary.