A New Era for Remittances
Shinhan Bank, one of South Korea’s biggest financial institutions, has successfully teamed up with Hedera Hashgraph to roll out a proof of concept aimed at transforming the international remittance landscape. Imagine sending money across borders in the blink of an eye and for pennies on the dollar—heck, we might even reminisce about snail mail by comparison!
How It Works
This groundbreaking proof of concept harnesses the power of Hedera’s network, which boasts extremely low transaction fees averaging just $0.0001. Yes, you read that right—no more making you feel like you need a second mortgage just to send cash overseas!
With transaction times clocking in at around 3 to 5 seconds, this system is a formidable challenger to the traditional remittance methods that can take days (and sometimes longer) to process. Let’s be honest—if we can deliver pizza faster than banks can deliver money internationally, it’s time for a change!
The Stablecoin Sweet Spot
Hedera and Shinhan Bank are not just focused on speedy transfers; they’re also looking to implement stablecoins for facilitating these transactions. The plan is to allow Shinhan Bank to mint Korean Won (KRW) backed stablecoins, while partner banks around the globe will issue their local stablecoins. This essentially creates a currency bridge that’s more reliable than a game of Telephone at a family reunion.
Why This Matters
For many individuals sending funds home, higher fees can eat up significant portions of their hard-earned money. The old-world traditional banking system was hanging onto its 6.51% average fee for sending $200 across borders—ouch! In contrast, the goal is to drive those fees down to around 3% by 2030, making money transfers less of a hit to anyone’s wallet.
The Bigger Picture
Mance Harmon, Hedera’s CEO, captured the zeitgeist perfectly when he remarked,
“There is a massive opportunity to cut out the middleman and make this process dramatically more efficient and cost-effective.”
Truer words were never spoken for those who’ve stood in line at their bank, watching their money slip through their fingers.
Shinhan Bank isn’t just dipping its toes into the blockchain pool either; it has been actively involved in the Hedera Governance Council since April 2021. It’s playing chess while the rest have been stuck on checkers!
The Market Reaction
The buzz surrounding this collaboration has already sent Hedera’s native token, HBAR, into overdrive, enjoying a hearty 10% price uptick in just 12 hours after the announcement. Whether you’re a skeptic or a believer in cryptocurrency, days like this certainly keep things spicy in the financial world!
