Alipay Brings Blockchain-Based International Payments to a Pakistani Bank
Thanks to a partnership between Telenor Microfinance Bank from Pakistan and Valyou, a fintech subsidiary of Telenor Group from Malaysia, Pakistan got what is claimed to be “the first blockchain-based remittance system” in the country.
At the same time, as stated in the official press release in Islamabad, blockchain technology should improve the efficiency of remittance payments between Malaysia and Pakistan, all powered by Alipay technology.
Malaysian Valyou and Pakistani Telenor Microfinance Bank Partnership Brings Blockchain-based Remittance System to Life
Alipay, a well-known online payment platform operated by Ant Financial Services Group enabled blockchain-based cross-border payments between Pakistan and Malaysia, which should not only contribute to the general efficiency of sending and receiving cross-border transactions, but will also cut the time needed for the payment to arrive.
Valyou and Easypaisa, also a part of Telenor Group, enabled this blockchain-based service, while both entities are taking care of communities with poor access to banks and financial services.
The country plans on promoting financial inclusion, which is why the service was presented within an official event in Islamabad where Governor Tariq Bajwa from the State Bank of Pakistan appeared, as reported by Business Wire on January 8th.
As stated in the press, the blockchain remittance service is a major milestone in financial plans of Pakistan, while the new service for cross-border payments comes with transparency and security yet unseen in the underbanked communities.
Tariq Bajwa added that this service will place Pakistan on the list of only several countries that have by far independently launched remittance payment systems powered by blockchain technology.
Now that the national remittance system is ready, people will be able to take advantage of privacy thanks to the fact that the information is being stored on blockchain, enabling real-time payments between Malaysia and Pakistan.
As stated by the senior VP from Telenor Financial Services, Roar Bjærum, Pakistan is receiving around 1 billion dollars in remittance from Malaysia at present, while the VP believes that the new blockchain service is set to make the statistics even better.
Pakistani users will now be able to track their payments thanks to the complete transparency of the system, also cutting on costs taken in fees.
Additionally, Alipay renounced taking fees from the service users during the trial period that will last for a year.
Blockchain Adoption Receives Green Light in Pakistan, Cryptocurrency Assets Still Not Favored
However, even though Pakistan is showing a clear interest in blockchain technology with the most recently launched blockchain-operated national remittance service, the country still appears to wage war on cryptocurrencies as the State Bank of Pakistan issued a proclamation where companies from Pakistan are prohibited from cooperating with cryptocurrency-related companies.
The State Bank stated at the time, back in April 2018, that any transaction that appears suspicious in terms of being connected to cryptocurrency will be reported to the officials of Financial Monitoring Unit.
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