Pakistan will get US$1 billion in remittances from Malaysia

Tariq Bajwa, Governor of the State Bank of Pakistan, launched the service on Jan 15 alongside the CEOs of Telenor Microfinance Bank, Standard Chartered Bank Pakistan, Ant Financial, and Valyou.

Pakistan is launching its first-ever blockchain remittance service in Malaysia, which it developed with assist from Alipay, the net cost platform serving Chinese big Alibaba.

It additionally marks Malaysia’s first foray into utilizing blockchain for worldwide remittance.

The service, which was unveiled on Tuesday (Jan 15) in Islamabad, will “significantly boost the speed and efficiency of ” from Malaysia to Pakistan, fintech firm Valyou mentioned in a press release.

It is obtainable by Telenor Microfinance Bank’s Easypaisa, in partnership with Valyou Malaysia.

The service is obtainable 24-7 and affords customers immediate cash transfers at a “competitive” trade charge, whereas decreasing the charges sometimes charged by conventional remittance strategies.

While it does cost transaction charges, Alipay mentioned it will waive these charges for a one yr trial interval.

The blockchain platform will even be “encrypted with advanced protocols in order to protect users’ privacy,” Valyou mentioned, including that it’s going to additionally let senders and receivers observe their cash throughout the course of.

Valyou chairman Roar Bjaerum mentioned that Pakistan presently receives about US$1 billion (4.1 billion ringgit) in remittances from Malaysia, and the brand new service will “redefine international money transfers” for the nation.

Pakistan’s state financial institution governor, Tariq Bajwa, added that remittances – which totalled  round US$20 billion per yr – comprise over 6 per cent of Pakistan’s GDP, which is equal to over one-third of the nation’s imports between 2017 and 2018.

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“International remittances are important from the perspective of overall macroeconomic stability,” he mentioned, including that in addition they had a “positive spillover” impact in bettering the lives of thousands and thousands of households.

As one of many “very few” international locations on the planet with blockchain-based worldwide remittance, the brand new service would put Pakistan on the map, he added.

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