XRP is one of the front runners to become the cryptocurrency of choice for international payment settlement. Siam Commercial Bank (SCB) already uses XRP to settle transfers between Japan and Thailand in a matter of seconds at almost zero cost. With this process seemingly working well, Thailand could find itself as the XRP hub of international payments.
Every so often Thailand calls itself a “hub” in a particular area, most notably in medical tourism. However, it’s possible that by becoming a hub for XRP Thailand could position itself favorably in the upcoming war of digital assets aiming to provide cheaper and almost instant money transfers.
Whilst Thailand isn’t known world wide for it’s financial institutions it does hold a couple of key factors which could prove influential when it comes to digital asset use.
Tourism
Thailand has over 35 million tourists a year. There are also an estimated 2.2 million legal and illegal migrants living in Thailand. With this huge number of people, there is a high demand for international currency transfers. As the Thai baht is not a currency which is widely available worldwide many tourists rely on local exchanges, ATMs and wire services to get cash into the country. As we know these all cost a fair chunk of money compared to XRP.
Savvy tourist venues could start to accept payment in XRP as Thailand currently has a couple of great exchanges offering XRP/THB pairs. My choice is BX.in.th as they have Thai and English language versions of the site and their bank transfers are efficient. Thai retailers could have THB in their account within 30 minutes of someone paying them in XRP.
With XRP costing a matter of pennies for transfers in the thousands of dollars it represents a big saving for those bringing money into Thailand. For those wishing to send money home, XRP allows overseas workers to avoid high fees and long waits to do so.
Currently the main use of XRP via SCB is to allow overseas Thai workers in Japan to send money back to Thailand. The reverse is certainly possible and many Japanese institutions are starting to use XRP too.
Some people see XRP and other digital assets as a way for banks to save money but certainly individuals can too. I’m from the UK but live in Thailand. I have to pay a $30 wire fee and lose on the exchange rate when sending funds between countries. This is even to mention the three to five day wait for the transfers. XRP is the way I’ll save time and money in the future.
Businesses and ASEAN
Whilst tourism contributes roughly 9% to Thai GDP there are certainly other reasons why Thailand could become an XRP hub.
As a member of ASEAN, Thailand works in harmony with nine other regional nations. As these countries each have their own currencies it would make sense that a bridging currency such as XRP could be used.
The immediate transfer time, low costs and common unit price would help bring certainty and lower costs for businesses in the trading bloc.
Thailand 4.0
There is a major push for a digital economy in Thailand. A way to hep promote this would be by using XRP as a worldwide payment system.
A lot of Thai businesses are now accepting contactless payment and some do QR code scans for payment which is a step forward. By using XRP as a payment option people would see Thailand’s digital policy as forward-thinking and modern.
Thailand – XRP Hub
Something I’ve noticed after living in Thailand is that changes don’t always happen quickly on a national scale. SCB have shown great vision by accepting XRP as a method to reduce costs and improve transfer times. However, nationally it would be a big change for people to accept.
I feel Thailand has real potential to be a hub for XRP and perhaps that can be achieved.
Featured Image by Marco Verch – Link Flickr
