Today
Telenor Microfinance Bank announced Pakistan’s first blockchain-based cross-border remittance service between Pakistan and Malaysia. The technology is powered by Alipay part of Ant Financial which in March 2018 took a 45% stake in Telenor Microfinance for $184.5 million.
The service is provided by Telenor’s mobile banking service Easypaisa in Pakistan and another subsidiary Valyou in Malaysia. The aim is to make payments real-time, 24/7 and more efficient. The data that’s uploaded to the blockchain platform is encrypted to protect user privacy. Blockchain allows the payer and recipient to track all the steps in the process.
Tariq Bajwa, Governor of the State Bank of Pakistan, explained the importance to Pakistan. International remittances amount to $20 billion a year, and home remittances contribute to more than 6% of GDP per year. That’s equivalent to 85% of the country’s exports last year. The channel between Pakistan and Malaysia accounts for $1 billion in remittances annually.
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