Myanmar’s Shwe Urban & Rural Development Bank has partnered with Everex, a financial technology (fintech) company to develop a blockchain-based digital remittance service between Thailand and Myanmar.
Migrants Will Have a Safer, Faster and Cheaper Alternative in The Future
The plan is to establish a platform which will allow Myanmar migrants living in Thailand to send their money back home. This new service will empower millions of workers to transfer their funds instantly and at lower costs than ever before.
Allegedly, Everex has developed a digital remittance platform that rivals the traditional methods, solely due to its blockchain capabilities. Their platform drops the usual high remittance fees, it records a legit audit trail of all transactions and processes money transfers within a minute.
According to the UN Migration Agency, 70% of the Myanmar migrants living abroad reside in Thailand, which amounts to about 3 million. The new initiative is expected to boost bank adoption among the Myanmar population, which is mostly not affiliated with any bank.
The New Technology is Expect to Increase Bank Adoption in Myanmar
Due to high remittance fees, workers tend to send their money through informal money-agent networks. While these may offer low rates, they often broker loans at incredibly high interest rates.
U Thein Zaw, Shwe Bank’s Executive Vice Chairman, said,
“Myanmar people working in Thailand are foreign currency earners of our country, and their hard-earned money is at risk when they send it home via informal channels.”
Zaw believes this safer alternative will motivate his countrymen to adopt banking services, adding,
“Shwe Bank and Everex have partnered to offer faster, less expensive and, most importantly, safer money transfers using Everex’s digital remittance platform. I look forward to working with Everex and expect this technology to improve financial inclusion for Myanmar migrant workers greatly.”
Alexi Lane, founder and CEO of Everex, expressed his excitement in the new partnership and the chance to open a new corridor between Myanmar and Thailand.
While the two companies are still working on the platform, they have already planned to expand the service to other Asian countries, once it’s been released in Myanmar.
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