As the first non-bank institution in Thailand to sign on to RippleNet, DeeMoney already processes inbound transfers using the blockchain network along remittance corridors in the Middle East and Gulf Regions, South Korea, Indonesia, Singapore, and Israel.
On March 18, it has been reported that Ripple and DeeMoney announced the second phase of their partnership to widen these services to support outbound remittances from Thailand to destination countries.
However, the value of remittances in Thailand is forecast to break the $1 billion mark in 2020, continuing a consistent uptrend from $623 million in 2018 and $850 million in 2019.
According to Ripple, with a million Thai nationals currently estimated to be sending remittances back home, the race to provide cross-border payments has driven banks and non-banks alike to establish lower-cost and faster international transfer channels for workers.
Unlike banking institutions, Thai nonbanks such as DeeMoney have faced more stringent regulatory requirements than their traditional counterparts, including specific licensing rules and daily transfer limits.
It has been analyzed that last year, DeeMoney made a step forward in what remains far from a level playing field by becoming the first and only nonbank provider in Thailand to secure special licenses from the central bank. The new permits will allow it to broaden its cross-border money transfer, exchange and e-payment services.
Aswin Phlaphongphanich, the CEO of DeeMoney, said that both firms share the aim of democratizing finance in Thailand by making cross-border transactions more accessible and efficient for those without access to traditional services.
However, in the legacy banking sector, innovation through blockchain networks has been incremental, with Thailand’s oldest bank Siam Commercial Bank last year retracting a tweet that it would begin to use Ripple’s XRP token.
Thus, in January 2020, it announced a collaboration with Ripple to create a mobile application for cross-border payments.
Source: ripple.com | cointelegraph.com | Image: thecoinrepublic.com