The governors of two Southeast Asian banks have endorsed a remittance system developed by blockchain firm Everex, with representatives of Thailand’s state-owned Krungthai Bank, Myanmar’s Shwe Rural and Urban Development Bank, and EVX Holdings signing a letter of intent to launch the region’s first blockchain-based, cross-border money transfer service between the two countries, reported by Banking Tech.
Over three million Myanmar migrant workers currently work and live in Thailand while sending money home to their families. The new transfer service, which will be known as “Krungthai Bank and Shwe Bank Remittance powered by Everex,” is intended to address two major issues currently faced by migrant workers — high remittance costs and lack of trust.
The Ethereum blockchain technology will enable customers to use the secure Everex wallet on their smartphones to make faster automated cross-border transactions at competitive exchange rates. Everex is now conducting focus groups and doing a pilot study with both banks in cooperation with Myanmar communities in Thailand.
Everex released a press statement citing Thailand’s central bank governor, Veerathai Santiprabhob, who called the project “an important step forward” for more than three million workers in Thailand who may have previously relied on transaction channels that were not secure.
U Kyaw Maung, Myanmar’s central bank governor also commented on the initiative during a recent ASEAN meeting of central bank governors and finance ministers. He remarked that the blockchain-backed transfer service mirrored how both countries shared “common culture and traditions,” which he said brought the two nations and peoples together.
Additionally, the Everex statement said the company received a letter of approval from the Bank of Thailand, the country’s central bank, to launch the service as requested by the parties involved.