One of the best ways to thrust cryptocurrency into mainstream finance is through cross-border remittances. Following this trend, a new partnership was established between the blockchain-based financial protocol Velo Labs and two other financial institutions, Bitazza and Tempo Payments. It is important to note that this partnership has resulted in a blockchain remittance corridor worth $17 billion between Thailand and Europe. According to the news sources, the local financial institutions, Bitazza and Tempo Payments will use the blockchain protocol of Velo Labs to connect Thailand with 27 European countries through a cross-border remittance service.
The remittance corridor will be making use of Velo digital credits and Velo tokens for the transactions. It will be hosted on the Stellar blockchain. It is expected to serve almost 600 million users across Europe and Southeast Asian countries. According to the announcement, all three companies, Velo Labs, Bitazza, and Tempo Payments, will rely on their respective networks to provide not just faster but also cheaper and safer money transfer options.
At the same time, the regulatory authorities in Thailand are cracking down on the use of crypto. In July, a warning against crypto assets was issued by the Bank of Thailand. The bank had reportedly cited risks which included price volatility, theft, and money laundering. It also expressed concerns regarding the widespread use of crypto and urged the users to refrain from using crypto to pay for goods and services. There is news that the Bank of Thailand is also planning to involve Securities and Exchange Commission to curb the risks posed by the use of cryptocurrencies.