For the Korean won backed Stablecoin project, Hedera Hashgraph and South Korean bank did a partnership.
In the present time blockchain adoption is at a tremendous level. And all the Central banks are doing their best to use blockchain technology in the traditional financial system. But the development and research work of the Central banks are not much faster like private Fintech firms. In this situation, crypto projects are doing their best for such types of initiatives.
In the latest, South Korean bank Shinhan Bank and Hedera Hashgraph (HBAR) completed their development work on the Proof-of-concept to pilot a Stablecoin (KRW) to conduct international payment (i.e cross border remittances).
The Proof-of-concept of South Korea’s Shinhan Bank will also use the blockchain network of the Hedera Hashgraph. And with this initiative, they claimed that they can easily facilitate cross-border remittances within seconds for a small penny of cents.
According to the Hedera Hashgraph team, a single transaction will complete within 3 to 5 seconds and a single transaction will cost around $0.0001.
So with the new initiative, both of these parties aim to improve and get advancement in the payment system over the traditional financial system.
Hedera Hashgraph announced about it on 29 November and said that they are working on this project to bring the advancement in payment system by introducing the blockchain-based payment system better for the businesses and also traceable transactions.
It is worth noting that, Hedra blockchain is based on the Proof-of-stake Consensus and it will use Proof-of-concept in this project.
After the completion of the project, Shinhan Bank will mint Korean won backed Stabelcoins to use for the international payments and in return partner international banks will issue local currency.