As per reports by the Pakistan English daily Dawn, as announced by the Telenor Group, the first blockchain remittance service between Malaysia and Pakistan has been launched.
This has been brought about by a collaboration between Telenor microfinance bank and Malaysia-based remittance company Valyou for a system that will be supported by AliPay’s blockchain technology. The service will apparently enable Malaysia-based Pakistani workers to send remittances back to their homeland. Here it may be noteworthy to understand that Malaysia has emerged as a major contributor to the overseas remittances for Pakistan during the past five months of the fiscal year by recording a 53.3% increase.
Initial reports about the service reveal that for the first year, transaction fees will be exempted, and that the money transfer will also be made extra secure by encrypting all the information with advanced protocols. Additionally, the sender and the receiver will be able to track their transactions as well.
The service was launched at a ceremony which was attended by the Governor State Bank of Pakistan (SBP), Tariq Bajwa. He, when asked about the issue said that international remittances, valued at USD 20 billion annually, are the backbone of Pakistan’s economy.
These remittances are essential for the macroeconomic stability and a positive spillover in improving the lives of millions of families… Home remittances are equivalent to over 6% in GDP and maintained that the blockchain-based remittance services would help in keeping the flow of money from abroad to Pakistan.
Though the company is hoping that this service will improve the efficiency and speed of the money transfer, they understand that there might be some reluctance to amongst people to use the technology, especially since other options are available. The lack of awareness regarding blockchain technology can also make it difficult for the users to be able to entrust the new service with their money.