Shinhan Bank Partners With Hedera Hasghraph (HBAR) For International Remittance, 3 Seconds Money Transfer To Destination!

JAKARTA – Shinhan Bank from South Korea is collaborating with crypto Hedera Hashgraph (HBAR) for interstate remittances after completing the Proof of Concept (PoC). PoC is designed for money transfer purposes by utilizing stable coins on the HBAR network.

With this PoC, money transfers between countries can be completed in seconds with a very cheap average fee per transaction, which is only US$0.0001. Hedera's own party claims that remittances can be done in 3 to 5 seconds.

HBAR said it was aimed at deciding on the possibility of issuing stablecoins to facilitate remittances at very low costs and very fast delivery times. In addition, every transaction can also be tracked as reported in the announcement on Hedera's official website on November 29 yesterday.

Reporting from Cointelegraph, Hedera Hashgraph is a public Distributed Ledger Technology (DLT) network with high security. Proof of Concept, which is proof that a particular method or idea can be implemented, using the Hedera Token Service (HTS) and the Hedera Consensus Service (HCS).

To support international remittances, Shinhan Bank plans to issue stable coins backed by Korean Won (KRW). In addition, international partner banks will take part in the trial and will issue stablecoins in local currencies. Therefore, bank clients who receive the KRW stablecoin will be able to exchange them for local currency stablecoins that can be exchanged for currency.

Based on a report from Remittance Price Worldwide in the fourth quarter of 2020, the cost of sending money of 200 US dollars overseas via traditional banks cost 6.51 percent or 13.02 US dollars. The cost of remittances is predicted to decrease by 3 percent in 2030.

“There is a huge opportunity to cut out the middleman and make this process dramatically more efficient and cost-effective, getting as much money as possible for the people who often need it urgently,” said Hedera CEO and Co-founder Mance Harmon.

For information, Shinhan Bank has been a member of the Hedera Governance Board since April 2021. The South Korean bank has also been a member of the Klaytn blockchain governance board since July 2021.

As of this writing, the HBAR cryptocurrency is trading at IDR 5033. HBAR prices are up 5.9 percent in the last 24 hours. Coiningecko reported that HBAR had broken its all-time high price (ATH) on September 15, 2021, at the level of Rp. 8,103.