Key Insights:

• Shinhan Bank’s PoC underscores stablecoins’ transformative power.
• Hedera’s DLT drives financial inclusion and cuts remittance costs.
• HBAR market surges, reflecting demand for efficient value transfer.

Shinhan Bank of Korea and SCB Tech X, a subsidiary of Siam Commercial Bank, have completed a proof of concept (PoC). This PoC focuses on applying stablecoins on Hedera’s public Distributed Ledger Technology (DLT).

Byunghee Kim, the blockchain leader at Shinhan Bank, recently praised the enormous potential of stablecoins. He said, “Stablecoins offer an efficient, fast, and reliable way for cross-border value transfer, driving financial inclusion and improving access to financial services for underserved individuals and businesses.”

Kim emphasized the benefits of Hedera’s Ethereum Virtual Machine (EVM)-compatible technology. This technology simplifies processes by removing intermediaries, thus cutting costs and speeding up remittances. This advanced technology is the foundation of Hedera’s smart contract capabilities, ensuring flawless 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

The use of stablecoins primarily focuses on cryptocurrency transactions, with a significant portion allocated to peer-to-peer payments. However, there are considerable differences in remittance costs globally, with some regions facing high fees of up to 35%. Conversely, countries like India provide more affordable rates due to high transaction volumes.

This progress has triggered a bullish trend in the Hedera (HBAR) market in the last 24 hours. The bulls have reached a 30-day high of $0.0606 at the time of reporting, marking a notable increase from the 24-hour low of $0.05433.

During this bullish surge, HBAR’s 24-hour trading volume saw a significant rise of 94.11%, while its market capitalization increased by 9.94% to reach $1,958,270,211 and $200,054,695, respectively.

HBAR/USD 24-hour price chart (source: CoinMarketCap)

Hedera Technical Analysis

The Keltner Channel Bands on the HBAR/USD 2-hour price graph are on an upward trend, with the top, middle, and bottom bands hitting $0.06023609, $0.05625181, and $0.05226754, respectively, indicating a rise in market volatility. This pattern implies a significant price shift, or breakout is on the horizon.

With the price activity touching the top band and starting to stabilize, it could face a phase of resistance. The appearance of red bars on the graph also hints at a surge in selling pressure, which might trigger a price drop.

The Chaikin Money Flow, currently at 0.18 and directed downwards, signifies a net withdrawal of funds from the market, reinforcing the potential for a downward price shift. If the CMF dips below zero, it will validate the pessimistic outlook and enhance the chances of a price fall.

HBAR/USD price chart (source: TradingView)

The stochastic RSI, currently at 84.83, has descended beneath its signal line, suggesting an overbought market that might be on the brink of a correction. This strengthens the case for an impending decline in prices.

On the other hand, the stochastic RSI might persist in its downward trajectory, crossing the overbought limit of 70. In such a scenario, it would reinforce the notion of an overstretched market, thereby amplifying the chances of a price reduction.

HBAR/USD price chart (source: TradingView)

Conclusion

To sum up, the compelling proof-of-concept executed by Shinhan Bank and SCB Tech X using Hedera’s Distributed Ledger Technology underscores the revolutionary potential of stablecoins in promoting financial accessibility. The rise in HBAR’s market value mirrors the escalating need for a proficient and economical method of cross-border value exchange.