Pakistan endorsed blockchain technology for the first time in the banking sector to catch the attention of worker remittances from Malaysia. To combat the rise of terror financing and money laundering Pakistan is going to adopt international remittance service using the blockchain technology.
The technology will not only make financial transactions immediate and secure, but will also document each and every step taken by the sender and receiver of remittances. This will assist scrap the illegal Hawala and Hundi system at the international level.
State Bank of Pakistan (SBP) orator Abid Qamar told that the deployment of the blockchain technology does not mean Pakistan has permitted international financial transactions in bitcoin and cryptocurrencies, which stay banned in the country. The central bank has allowed the use of the technology which has thousands of uses.
Telenor Microfinance Bank said “Telenor Microfinance Bank, in partnership with Valyou of Malaysia, has introduced Pakistan’s first blockchain-based cross-border remittance service, powered by the industry-leading blockchain technology developed by Alipay – the online payment platform operated by Ant Financial Services Group.”
CEO Noman SI Global Solutions, who was part of the Islamabad Safe City project, said that Pakistan is moving in the right direction. This is a much bigger step than just digitalizing financial transaction. This is all about a dedicated computing power between encrypt (send) and decrypt (receive).
Blockchain Technology will make round-the-clock, real-time money relocation between the two countries possible at a ready for action exchange rate, with Alipay’s transaction fee waived during the one-year trial period.
Ant Financial Chairman and CEO Eric Jing emphasize that the new remittance service is one of the examples of how emerging technologies can help out countries meet their digital and financial enclosure goals. We are delighted to be part of Pakistan’s financial inclusion efforts and we’re devoted to explore breakthroughs and applying them to benefit more people in more places.