In Brief:
- Shinhan Bank announces its collaboration with Hedera Hashgraph.
- The bank developed a proof-of-concept that assists international remittances utilizing stablecoins on the Hedera network.
- The project aims to study the feasibility and financial use cases of stablecoins.
South Korea’s leading bank, Shinhan Bank, announced its partnership with Hedera Hashgraph focusing on a KRW stablecoin pilot project for international remittances.
According to the press release, Shinhan and Hedera have created a proof of concept that supports international remittances on the Hedera Network utilizing stablecoins.
Hedera Hashgraph is a high-security public Distributed Ledger Technology (DLT) network based on proof-of-stake and the project seeks to test the issuance and distribution of stablecoins using the Hedera Token Service (HTS) and Hedera Consensus Service (HCS).
Its goal is to see if stablecoins can be issued and distributed for financial use cases with cheaper fees and faster transaction times than present systems while simultaneously being traceable.
On the Hedera Network, the proof-of-concept allows users to transmit money abroad in seconds for a fraction of a cent.
The average charge per transaction on the network is $0.0001, and the typical transaction time is 3-5 seconds, according to the Hedera.
Shinhan Bank intends to mint stablecoins backed by the Korean Won (KRW), while overseas partner banks participating in the project would issue stablecoins in local currency.
Bank clients will be able to swap KRW stablecoins for local currency stablecoins, which may then be exchanged for local fiat currency.
The Hedera Consensus Service (HCS) will be utilized by the two banks to track and record transactions as well as confirm the foreign exchange price at the time of every transaction.
Mance Harmon, CEO, and Co-founder of Hedera stated, “There is a massive opportunity to cut out the middleman and make this process dramatically more efficient and cost-effective, getting the most money possible to people who often need it urgently. We commend Shinhan and their partner for developing this solution and are proud that it takes advantage of the economic and speed benefits that only the Hedera network can provide.”
Recently South Korea hit the headlines when South Korean financial regulator Financial Services Commission (FSC) stated its intention to implement a tax system for NFTs using the Specified Financial Transaction Information Act.
