Ripple announced that Siam Commercial Bank of Thailand will introduce multi-hop function. This means that it can be faster and less expensive than inter-bank settlement through existing banks. The Ripple side emphasized that the settlement of the ASEAN region will be facilitated through Siam Commercial Bank.
Using the multi-hop function, it is possible to send remittance even when the settlement between financial institutions is not directly connected to financial institutions at a ratio of 1: 1. The city serves as a bridge between the place where the commercial bank becomes the intermediary and the remitter.
According to Ripple, in a system that has gone through an existing bank, it was necessary to convert from the dollar to the recipient ‘s local currency because the local currency was exchanged for dollars and remittances through several banks. Therefore, it was pointed out that it required a lot of money for foreign exchange remittance. The multi-hop function makes it easy to settle within ASEAN without exchanging currency with Siam Commercial Bank. The ripple side implies that the settlement of the settlement in the region of Asena will be a democratization.
Small-scale financial institutions that have the ability to settle as an ASEAN country will be able to democratize and easily settle their access to ASEAN regardless of the size of their payments and the liquidity of financial institutions. Ripple explains that this announcement will be a milestone for rifnet scaling. For more information, please click here .