Standard Chartered Launches Bangladesh’s First Blockchain-Based Cross-Border Remittance Service

Standard Chartered Bank, in collaboration with bKash, Bangladesh’s largest mobile financial service provider, and Valyou, Malaysia’s leading digital remittance platform, has announced the launch of Bangladesh’s first blockchain-based cross-border remittance service. Powered by Ant Group’s innovative blockchain technology, this service is set to revolutionize remittance transfers between Malaysia and Bangladesh, providing instant, secure, and transparent transactions.

How the Service Works

The new blockchain-based remittance service simplifies and accelerates the process of transferring money from Malaysia to Bangladesh.

Key Features:

1. Instant Transfers: Bangladeshi workers in Malaysia can send money instantly to beneficiaries in Bangladesh who are bKash wallet users.
2. Blockchain Technology: Ant Group’s blockchain technology ensures faster processing, enhanced security, and improved transparency.
3. Convenience for Users:
   • Senders can initiate transfers via Valyou’s digital wallets in Malaysia.
   • Recipients can withdraw funds through 240,000 bKash agent points across Bangladesh.

Significance of Remittance for Bangladesh

1. Economic Contribution

Wage remittance by Bangladeshi nationals working abroad is a major pillar of the nation’s economy, contributing significantly to the country’s foreign currency reserves.

• Key Remittance Corridor: Malaysia plays a crucial role in this ecosystem, as a large portion of the Bangladeshi diaspora resides and works there.

2. Support for Families

Millions of families depend on remittance for their livelihoods, making efficient and reliable money transfer systems essential.

Partners Driving the Initiative

The service is a collaborative effort among:

• Standard Chartered Bank: Acts as the fund settlement bank and holds regulatory approvals.
• bKash: Facilitates recipient-side transactions and provides cash-out and additional financial services.
• Valyou: Enables digital remittance initiation from Malaysia.
• Ant Group: Powers the blockchain technology for faster, safer, and transparent remittance processing.

Benefits of Blockchain Technology in Remittance

Blockchain technology brings several advantages to cross-border remittance systems:

1. Speed and Efficiency
   • Reduces transaction time to near-instantaneous transfers.
2. Enhanced Security
   • Blockchain ensures data encryption and secure fund movement.
3. Transparency
   • Provides real-time tracking and clear transaction records for both senders and recipients.

Statements from Key Leaders

Naser Ezaz Bijoy, CEO, Standard Chartered Bank, Bangladesh:

“Remittance is an important driver of our economy. With our partners, we are introducing a next-generation solution that simplifies and speeds up the remittance experience. This service will be available 24/7 and accessible via mobile phones, benefiting end-users and formal remittance channels.”

Kamal Quadir, CEO, bKash Ltd:

“This partnership offers seamless remittance for Bangladeshi expatriates in Malaysia. Recipients in Bangladesh can easily cash out from over 240,000 agent points or use a wide range of bKash services. This integration will enhance convenience for users and contribute to our foreign remittance earnings.”

Impact on Users

For Senders in Malaysia

• Convenience: Initiate transfers directly from Valyou’s digital wallet.
• Speed: Instant delivery of funds.

For Recipients in Bangladesh

• Accessibility: Withdraw funds easily from nearby bKash agent points.
• Wide Usage: Use received funds for bill payments, savings, or other bKash services.

Future of Blockchain in Remittance

This initiative marks a significant milestone in adopting blockchain technology for real-world financial applications in developing countries.

Expected Outcomes:

1. Increased Formal Remittance Channels
   • Encourages the use of formal remittance systems, reducing reliance on informal channels.
2. Economic Growth
   • Enhances foreign currency inflows and contributes to national reserves.
3. Increased Adoption of Blockchain
   • Demonstrates the potential of blockchain for efficient, secure, and scalable financial services.

FAQs About Blockchain-Based Remittance in Bangladesh

1. What is the purpose of this blockchain-based remittance service?
To provide instant, secure, and transparent cross-border remittance services between Malaysia and Bangladesh.

2. Who are the key partners in this initiative?
Standard Chartered Bank, bKash, Valyou, and Ant Group.

3. How does blockchain technology benefit remittance?
Blockchain improves transaction speed, enhances security, and provides transparency.

4. How can recipients access the funds in Bangladesh?
Recipients can withdraw funds through bKash agent points or use bKash services for bill payments and other transactions.

5. When will the service be available?
The service is in the final stages of commercial testing and will launch soon.

Conclusion

The launch of Bangladesh’s first blockchain-based cross-border remittance service is a groundbreaking step in modernizing the remittance process. By leveraging blockchain technology, Standard Chartered Bank, bKash, Valyou, and Ant Group are creating a faster, more secure, and transparent remittance ecosystem.

This service not only benefits millions of Bangladeshi expatriates and their families but also strengthens the nation’s economy by increasing formal remittance channels.

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