The telecommunication major Telenor has announced the launch of blockchain-based cross border remittance service in Pakistan. This is the very first time that a service based on blockchain technology has been launched in Pakistan. An announcement in this regard was made at an official event hosted in Islamabad, and the information was shared by Telenor through its press release.
Telenor and Valyou
The service has been initiated by the Microfinance Bank of Telenor in collaboration with Valyou of Malaysia. So that you know, Valyou is a financial technology organization which provides remittance to the under-banked communities in Malaysia. The blockchain technology for this cross-border remittance system has been developed by Alipay and will enable the Pakistani residents living in Malaysia to send the money to their own country securely and instantly through Telenor’s partner Valyou. The official statement said that the launch of cross-border remittance marks a major milestone in Pakistan’s journey to promote greater financial inclusion. It further added that use of blockchain technology would significantly boost the efficiency and speed of remittance from Malaysia to Pakistan.
Secure and Competitive Rates
To make the exchange rate competitive, the transaction fee charged by Alipay will be waived for the 1st year trial period of the remittance service, the information revealed by the official handout. As the service is based on the blockchain technology, all the data and information will be encrypted with advanced security protocols to protect the privacy of the users. This will make sure that all the transactions will subscribe to the highest standards of safety and security.
The official launch program of the service was hosted in Islamabad and attended by the Governor of the State Bank of Pakistan (SBP) Tariq Bajwa among other dignitaries. Speaking on occasion, Bajwa said that the international remittances hold a special significance for the country in terms of providing stability to country’s macroeconomic perspective and their positive spillover effect can improve the lives of millions of families. Home remittances in Pakistan have a share of over 6% in the country’s GDP, which is equivalent to around 50% of its trade deficit, 85% of its export, and one-third of its import during the financial year 2017⎯18. The Governor further added that the start of this new service would complement the efforts made by the SBP and the Pakistani government to promote home remittances through the formal and legal financial channels. The new service has also put Pakistan in league with few countries in the world which are using blockchain Technology for international cross-border remittances.