First Blockchain-Based Remittance in Philippines Completed
In this article (5)
Major Philippines lender Union Bank has completed the first-ever blockchain-based remittance in the nation from OCBC in Singapore.
The bank reportedly used an Ethereum-powered liquidity management system alongside its own proprietary i2i platform to complete the transaction from OCBC as a pilot. The funds were remitted to an account holder at Cantilan Bank in Surigao del Sur, a southeastern province.
Chief fintech officer of the Monetary Authority of Singapore Sopnendu Mohantynoted that the city-state’s regulator had been exploring blockchain-based payments since 2016.
We are excited to see this potential being realized, with cross-border payments that are cheaper, faster, and safer through the i2i network, he said.
Rural banks have limited access to financial networks and a lag for remittances to be credited—five to seven days. Non-bank remittance counters offer faster execution but at a higher and sometimes unbearable cost for the relevant market segment.
On the other hand, the crypto-based platform which the aforementioned banks used, Adhara, allows users to settle real-time payments at low cost and high efficiency by tokenizing assets and smart contracts on an Ethereum-based ledger.
Questions & Answers
Q.Which specific platform did Union Bank use for this blockchain-based remittance?
Which specific platform did Union Bank use for this blockchain-based remittance?
Union Bank reportedly used an Ethereum-powered liquidity management system alongside its own proprietary i2i platform. The crypto-based platform Adhara, which allows for real-time payments, was also used by the banks involved.
Q.How does this new blockchain-based system compare to traditional remittance methods for rural banks?
How does this new blockchain-based system compare to traditional remittance methods for rural banks?
Rural banks typically face limited financial network access and a five to seven day lag for remittances. This new system offers real-time payments at low cost and high efficiency, in contrast to these traditional delays.
Q.Who was the recipient of the first blockchain-based remittance in the Philippines?
Who was the recipient of the first blockchain-based remittance in the Philippines?
The funds were remitted to an account holder at Cantilan Bank, located in Surigao del Sur, a southeastern province. This bank is likely one of the rural institutions benefiting from the new system.