Cross-border remittance is currently one of crypto’s most promising applications in mainstream finance. Parallel to this trend, a new collaboration between Velo Labs and two financial institutions has resulted in the creation of a $17 billion remittance corridor between Europe and Thailand.
Local financial institutions Tempo Payments and Bitazza will host the cross-border remittance service, which will connect Thailand and 27 European countries, using Velo Labs’ blockchain-based financial protocol.
The corridor will be hosted on the Stellar blockchain and will conduct on-chain transactions with Velo tokens and Velo digital credits. The new corridor will serve approximately 600 million customers from Southeast Asian countries and Europe.
According to the announcement, all three partner companies intend to provide a faster and cheaper money transfer option “by relying on their respective networks.”
The Bank of Thailand (BOT) recently issued a warning against crypto holdings, citing risks such as money laundering, theft, and price volatility.
The BOT also expressed concern about the widespread use of cryptocurrency, advising users to avoid paying in cryptocurrency for goods and services. If not, the BOT intends to work with agencies such as the Securities and Exchange Commission to “ensure that they (digital assets) do not pose significant risks to the general public or the economic and financial system.”