Hottest Fintech News: FinFan opinion about Circle – SBI Holdings and the story about USDC in Japan

Today, November 27, the memorandum of understanding between Circle and SBI Holdings was officially approved and USDC has officially set foot in the Japanese market, from here opening opportunities for industry development. Cryptocurrencies in general and stablecoins in particular in cherry blossom country.

According to Cointelegraph writer BRAYDEN LINDREA, this memorandum of understanding dates back to June this year when the Japanese government amended the Payment Services Act in June to establish regulations for stablecoins, which Circle believes will “stimulate the issuance and circulation of stablecoins in Japan and accelerate Japan's transition to a Web3 economy.”

The fact that Circle has reached an agreement with SBI Holdings to develop stablecoin USDC partly speaks to the importance of Web3 in the economies of developing countries. So, what benefits will it have and how will it impact Vietnam? Let's find out more with FinFan through the following article.

First, let's learn about the development of remittance flow to Vietnam from Japan

Status of remittances sent to Vietnam from Japan over the years.

Over the past many years, the number of people exporting labor from Vietnam to Japan has been increasing in proportion to the amount of money they send back to Vietnam.

According to Mr. Pham Viet Huong - Deputy Director of the Department of Overseas Labor Management (Ministry of Labor, War Invalids and Social Affairs), Vietnam is the leading country in the number of interns practicing immigration as well as being implemented in Japan (more than 200,000 people). In addition, by December 2022, over 77,000 Vietnamese special workers are living and working in Japan.

Furthermore, according to Ms. Ingrid Christensen - director of ILO in Vietnam, through statistics, the number of Vietnamese workers in Japan is very large, accounting for 1/4 of the total 1.82 million foreign workers in Japan. Thereby, Vietnam benefits from remittances equivalent to 3 billion USD/year.

Opportunities for fintech companies in the field of remittances in Vietnam

With the number of remittances to Vietnam increasing steadily every year, this is a huge opportunity for fintech businesses in the remittance industry to capture and target this market.

With the amount of remittances sent to Vietnam increasing steadily every year, this is a huge opportunity for fintech businesses in the field of remittances to capture and target this market in the context of fewer and fewer Vietnamese people in Western countries sending remittances to Vietnam.

That is because social conditions in big cities are increasingly developing and those who send money mainly use that money to invest for profit, and of course, that amount will be large but not continuously.

Difficulties for businesses when accessing the remittance market from Japan to Vietnam

Before setting foot in a foreign country to export labor, companies give each employee a VISA card and detailed instructions on how to send money back to Vietnam. That affects international businesses when they want to set foot in this market.

However, this barrier can be overcome by ways to promote sending small amounts of money directly to the recipient's e-wallet on the occasion of the Vietnamese people's Tet holidays, such as the upcoming program that will conclude. Collaboration between reputable money transfer units in the remittance market such as Sendwave, Ria, Remitly, Paysend with FinFan and Vietnamese partner MoMo.

Second, the future will bring more opportunities for the remittance industry when expanding into the crypto market (especially USDC)

Vietnam, a country always in the top 5 in the world in terms of cryptocurrency adoption

This has been mentioned by FinFan in previous articles on our blog.

Future expansion of USDC money transfer to Vietnam

Currently, in the Vietnamese market, there is still no official information from state agencies about the approval of cryptocurrency as a payment solution.

However, with the growing development of blockchain technology in Vietnam, in the near future, the Vietnamese government may create a CBDC currency for itself and use that currency as a token. Exchange with international stablecoins from Japan at the same exchange rate as fiat currency.

The current method for converting remittances from USDC to Vietnamese Dong

With the desire to support Vietnamese people abroad (especially Japanese people who invest in crypto and own USDC) to transfer this amount of money to Vietnam in Vietnamese Dong.

FinFan has joined hands with TrippleA to launch a service to support money transfer from cryptocurrencies to Vietnamese currency. For more detailed steps, read here