Blockchain technology in remittance has paved its way to the Asian market with Telenor Microfinance Bank and Valyou of Malaysia. Both the big giants have collaborated to develop blockchain-powered cross-border remittance service. The online payment platform is operated by Ant Financial Services Group. This service has been launched by Pakistan’s industry-leading Alipay.
Telenor’s Easypaisa and Valyou is a financial technology company that facilitates payment and transfer services to underbanked communities. The launch of this idea was done recently by State Bank of Pakistan Governor Tariq Bajwa who added that this step is going to mark a breakthrough in the finance sector which will help in alleviating financial inclusion. This project is specifically going to help the remittance operations between Malaysia to Pakistan. It will offer enhanced efficiency and speed along with information or data storage, uploading and sharing within a given network making sure that the client’s privacy is protected all the time.
State Bank of Pakistan Governor stated that this will bring Pakistan in the list of the countries which have been using blockchain technology in remittance on an international level. He further added that international remittances hold prime importance as its value in the market is around USD 20 billion per year. Also, home remittances have contributed for 6% in the Pakistan GDP which becomes equivalent to85% of exports and over 50% of our trade deficit for the year 2017-18, as mentioned by Business Wire.
Importance Blockchain Banking
According to Token Mantra, the physical blockchain banking holds major importance to bridge the gap between traditional and the crypto-investment world. Interestingly, the world’s first such bank is going to be launched in Malaysia which supports both blockchain and crypto trade. This project will be completed in the partnership of CGCX.io, Singapore-based crypto company, and IBH Capital, a part of IBH Investment Bank.
Blockchain technology in remittance is projected to be the shining star of this industry and therefore all the major banks are looking forward to integrating this technology within their systems in the coming time.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]