The South Asian nation of Bangladesh will soon get its first blockchain remittance system that may allow Bangladeshi expats in Malaysia to immediately transfer wage remittances to their home country.
According to a written report from The Business Standard, the British national banking service firm Standard Chartered Bank (SCB) today announced the blockchain-based cross-border remittance service for Bangladesh.
SCB developed the remittance service in collaboration with the Bangladesh-based mobile banking platform bKash and the Malaysian remittance provider Valyou. It utilizes the blockchain technology of Ant Group, the financial arm of the Chinese business conglomerate Alibaba Group.
Ant Group, formerly known as Ant Financial, appointed SCB as its core partner bank in 2018 to work on new blockchain remittance systems.
While the remittance service for Bangladesh remains in the ultimate stage of its commercial testing, the lender plans to launch it soon for Valyou and bKash clients. Following the launch, Bangladeshi wage earners in Malaysia will be able to transfer funds via Valyou to bKash wallet holders in Bangladesh.
Standard Chartered Bank will become the fund settlement bank and regulatory approval holder for the remittance service.
Naser Ezaz Bijoy, CEO of Standard Chartered Bank, Bangladesh, said that remittances were an important driver for the Bangladesh economy and supported millions of families. The launch of an immediate remittance system available 24/7, he said, would make the transfer process easier for remitters.
As Cointelegraph reported in August, SCB also settled the first blockchain transaction in Bangladesh by issuing a letter of credit for a trade between apparel manufacturer and exporter Viyellatex Ltd. and Viyellatex Spinning.