Korea’s Shinhan Bank and SCB Tech X, part of Siam Commercial Bank, have carried out a proof of concept (PoC). The PoC centers around using stablecoins on Hedera’s public Distributed Ledger Technology (DLT).
Byunghee Kim, the head of blockchain at Shinhan Bank, lauds the immense potential of stablecoins in his recent statement, stating: “Stablecoins provide a cost-effective, swift, and dependable method for transnational value transfer, propelling financial inclusion and enhancing financial services accessibility for underserved individuals and businesses.”
Kim highlights the advantages of Hedera’s Ethereum Virtual Machine (EVM)-compatible technology, which streamlines processes by eliminating intermediaries, thereby reducing costs and expediting remittances. This cutting-edge technology forms the bedrock of Hedera’s smart contract capabilities, ensuring seamless compatibility with Ethereum.
Stablecoins are going to be the gateway to getting tradfi markets onchain, starting with one obvious pain point: international remittance. @hedera is laying the foundation for this transition. Great collaboration between @ShinhanBankENG SCB TechX, @swirldslabs, @HBAR_foundation https://t.co/fpgJO2Co3A
— Sabrina Tachdjian (@tsakoog) July 19, 2023
Currently, stablecoin usage is predominantly centered around cryptocurrency transactions, with a notable portion dedicated to peer-to-peer payments. However, significant disparities persist in remittance costs worldwide, with some regions burdened by exorbitant fees reaching up to 35%. In contrast, countries like India offer more affordable rates due to higher transaction volumes.
This development has sparked a bullish surge in the Hedera (HBAR) market over the past 24 hours, with the bulls achieving a 30-day high of $0.0606 at press time, marking a significant rise from the 24-hour low of $0.05433.
During this bullish rally, HBAR’s 24-hour trading volume experienced a substantial increase of 94.11%, while its market capitalization rose by 9.94% to reach $1,958,270,211 and $200,054,695, respectively.
Hedera (HBAR) Technical Analysis
The Keltner Channel Bands on the HBAR/USD 2-hour price chart are rising, with the upper, middle, and lower bands touching $0.06023609, $0.05625181, and $0.05226754, respectively, reflecting the market’s increasing volatility. This trajectory suggests that a breakout or significant price movement is imminent.
As the price action has reached the upper band and begun to consolidate, it may encounter a period of resistance. The formation of red candlesticks on the chart also suggests that selling pressure is increasing, which could lead to a price decrease.
The Chaikin Money Flow at 0.18 and pointing south indicates a net outflow of money from the market, supporting the possibility of a price movement to the downside. If the CMF falls below zero, it will confirm the bearish sentiment and increase the likelihood of a price decline.
With a reading of 84.83, the stochastic RSI has moved below its signal line, indicating that the market may be overbought and due for a correction. This adds to the evidence of a possible downward price trend.
However, the stochastic RSI could continue to fall and drop below the overbought threshold of 70; In that case, it will further confirm that the market is overextended and increase the likelihood of a downward price movement.
In conclusion, the successful PoC by Shinhan Bank and SCB Tech X on Hedera’s DLT highlights the transformative power of stablecoins in driving financial inclusion. The surge in HBAR’s market reflects the growing demand for efficient and cost-effective transnational value transfer.