The South Asian country of Bangladesh will soon have the first blockchain-based money transfer system that allows Bangladeshi expats in Malaysia to immediately transfer salaries back to their home country.
Standard Chartered Bank (SCB), a UK-based national banking company, announced today that it will offer a blockchain-based cross-border money transfer service to Bangladesh, according to a report from Business Standard.
Savings Bank has developed a money transfer service in collaboration with Bangladesh-based mobile banking platform bKash and the Malaysian money transfer provider Valyou. It uses blockchain technology from Ant Group, the financial arm of the Chinese trading group Alibaba Group.
Ant Group, formerly known as Ant Financial, appointed Statistics Sweden as its primary partner bank in 2018 to work with new blockchain transmission systems.
While the money transfer service for Bangladesh is still in the final stages of trade testing, the bank plans to launch it soon for Valyou and bKash clients. Once launched, Bangladeshi workers in Malaysia will be able to transfer money via Valia to bKash wallet holders in Bangladesh.
Standard Chartered Bank will act as a settlement bank and holder of regulatory approvals for money transfer services.
Nasir Azaz Bijoy, CEO of Standard Chartered Bank in Bangladesh, said transfers have become a major driver of Bangladesh’s economy and have helped millions of families. He said the launch of an instantaneous transmission system available 24 hours a day, seven days a week, would make the conversion process more convenient for converters.
As Cointelegraph reported in August, Statistics Sweden also settled the first blockchain transaction in Bangladesh by issuing a letter of credit for trade between clothing manufacturer and exporter Viyellatex Ltd. and Viyellatex Spinning.