Pakistan’s government has been implementing a blockchain that was created by Alibaba’s Alipay. However, digital currencies such Bitcoin are still not permitted in the country, for payment processing. The reason why they are not using Bitcoin, is because of the money laundering that is associated with it. The goal of Financial Action Task Force (FATF) of Pakistan, is to use a blockchain technology that avoids a means for money laundering. Last year, the country created an alliance with a bank called, Telenor Microfinance Bank. The financial institution is owned by Alipay, which obtained 45% of shares on MicroFinance Bank that came out to $184.5 million!
This week, Pakistan released news that they have integrated the blockchain platform, created by Alipay. This will allow for cross-border payment transactions between Pakistan and Malaysia. The governor of the State Bank of Pakistan, claims that this is a big accomplishment for the country, and this will increase financial relevance and inclusion for the nation. However, is it really considered financial inclusion if the country is not using Bitcoin or Ethereum? For now this poses as a contradiction for the country’s goals, but it is a start and we predict that the country will eventually adopt these major cryptocurrencies as well.