Two countries introduced blockchain-based international remittances

Blockchain technology backed home remittances from Malaysia to Pakistan to promote financial inclusion

Two countries introduced blockchain-based international remittances. Source: shutterstock.com

Telenor Microfinance Bank, in partnership with Valyou of Malaysia, has introduced Pakistan’s first blockchain-based cross-border remittance service, powered by blockchain technology developed by Alipay, the online payment platform operated by Ant Financial.

The blockchain remittance service is provided by Telenor’s Easypaisa and Valyou, a financial technology company that provides remittances to underbanked communities.

The blockchain technology will significantly boost the speed and efficiency of remittances from Malaysia to Pakistan. It will also ensure the money transfers are highly secure and transparent, as all information stored, shared, or uploaded through the blockchain remittance platform will be encrypted with advanced protocols in order to protect users’ privacy.

This puts Pakistan on the map of very few countries in the world that have launched International Remittance using blockchain technology. At around $20 billion per year, international remittances are important from the perspective of overall macroeconomic stability and their positive spillover in improving lives of millions of families. Home remittances contributed to over 6% in GDP, equivalent to over 50% of our trade deficit, 85% of exports and over one-third of imports during FY 2017-18
Tariq Bajwa, Governor, State Bank of Pakistan

By eliminating intermediary costs, the new remittance service reduces transactional cost for end-users, while the blockchain technology enables both senders and receivers to track their money every step of the way.

SEE ALSO: How to invest in blockchain with minimum risk

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