World’s First Blockchain-Based Cross-Border Remittance Service by Ant Financial

Redefining “Cross-Border Remittance.”

At the press conference, Jack Ma recalled a request from a Filipino that he received many years ago. He said, “When can we use Alipay to remit money back home? Remittances cost so much.” He had asked Eric Jing, Executive Chairman & CEO of Ant Financial, the same question for dozens of times in the past year. “Today I am very happy to witness this amazing moment.

How Does the Blockchain-based Cross-Border Remittance Service Work?

The blockchain is a distributed ledger of data records that is jointly maintained by multiple parties and continuously stored in a blockchain structure. The content and time sequences of these records are protected using cryptography so that any party cannot alter, repudiate, or falsify them.

  1. Quick: Users can transfer money in seconds.
  2. Convenient: Users can send and receive remittances around the clock. Users can spend money in the wallet immediately after receipt (in buying mobile phone traffic, paying bills, etc.).
  3. Low-Cost: With the automatic execution of blockchain smart contracts, the operation, compliance, and reconciliation costs of financial institutions get reduced. Also, due to the improvement of the overall processing efficiency, the capital operation efficiency has been improved, which lowers costs. This also ensures favorable exchange rates.
  4. Secure: As blockchain has a ledger that is unalterable and smart contracts, the participants of cross-border remittances have a real-time and credible information verification channel, making remittances traceable and more secure. Due to the use of consortium blockchain and the hash algorithm, the privacy of users is fully protectable.
  5. Transparent: The blockchain technology can also lower risks and provide more transparent supervision and more efficient risk control for cross-border remittances. The regulatory institutions in Hong Kong and the Philippines can monitor individual cross-border remittance links in real time and throughout the process, significantly improving timeliness and effectiveness.

Tackling Social and Legal Issues with Blockchain

The blockchain is the most popular technology in the Internet industry in the past year, but many people think of it as “issuing currencies,” “getting rich overnight,” and “reshuffle.” According to Eric Jing, these bubbles will burst, and the real value of blockchain will be revealed. The blockchain serves to create a multi-party trust mechanism, address the credibility of data, goods, assets, contracts, and individuals, and promote active collaboration among agencies and individuals.

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