South Korean Shinhan Bank, together with the Hedera Hashgraph team, completed the development of a “proof of concept” for an international transfer system using stablecoins.
The advantages of the new system are called the execution of a transaction in a few seconds, and the commission can be less than a cent. For this, various stablecoins are used. For example, when sending money from South Korea, the client’s funds will be transferred to a stablecoin pegged to the Korean won. The stablecoins are then transferred to the beneficiary’s bank account, where they are converted into a stablecoin pegged to the local currency, and finally withdrawn into fiat money.
The main advantages of using blockchain and stablecoins are said to be lower fees and speed of transfers. When using the traditional financial system for an international transfer of $ 200, the average commission is $ 13.02 (6.51%). Blockchain-based payment systems will reduce commissions hundreds of times.
“There is a great opportunity to get rid of intermediaries and make the international transfer process more efficient and cost-effective. People who urgently need money can get it quickly and cheaply, ”said Mance Harmon, co-founder and CEO of Hedera Hashgraph.
As a reminder, Shinhan Bank became a member of the Hedera Hashgraph managing project in April.