Instant International Transfers Are Now Possible On The Ripple Blockchain

Instant International Transfers Are Now Possible On The Ripple Blockchain

Instant international payments are already possible. It remains to be seen whether the blockchain technology will be widely used to make them a norm.

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The first remittance service between Japan and Thailand rolled out on June 30. Launched by Thailand`s Siam Commercial Bank (SCB) in collaboration with Japan`s SBI Remit, the service is powered by the Ripple`s blockchain.

As almost 40,000 Thai nationals live in Japan, the Thailand-Japan remittance corridor is reportedly seeing around $250 million transferred each year. Therefore, the possibility of near-instant international bank transfers between the two countries seems like a much needed step forward.

Transferring in a few seconds

According to the Siam Commercial Bank, making a transaction between the two countries is now taking from “two to five seconds” thanks to the blockchain technology. Normally, a transaction would be completed in a period of “2 business days”.

“In this case, Ripple was impressive in concept and turned out to be more so in practice.”, said SBI Remit director, Nobuo Ando, in an interview with cryptocoinnews.com.

“Furthermore, we can expect to have more favorable foreign exchange opportunities as Ripple’s network expands.”, as he elaborated.

The Siam Commercial Bank is also looking for opportunities to use the Ripple blockchain in order to manage transactions in other remittance corridors across North America, Asia Pacific and Europe, according to the publication.

The bank is investigating such options to assist its customers, whose families “oftentimes depend on the availability of these funds for basic needs – time is of the essence to them”, as Dr. Arak Sutivong, SCB’s strategy chief, noted.

More Blockchain transfers coming soon?

It is not the first time Ripple`s blockchain is being used for a remittance pilot. In April, Spanish banking company BBVA used their blockchain to make a money transfer between Spain and Mexico.

In July last year, the Canadian-based ATB Financial transferred CA$1,000 (EUR 667) to the German ReiseBank with the help of SAP`s technology and Ripple`s blockchain services. In September, the London-based banking and financial institution Standard Chartered implemented blockchain technology to complete a cross-border payment in just 10 seconds.

Instant international payments are already possible. It remains to be seen whether the blockchain technology will be widely used to make them a norm.

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