Alipay: Innovate “Warm” technology that helps people. The world’s first blockchain cross-border remittance in Hong Kong

23/07/2018

 

This is another innovative exploration by Ant Financial in blockchain following charity donations, food traceability, and rental management.

 

Blockchain technology has made breakthroughs. On June 25, the world’s first blockchain cross-border remittance goes online in Hong Kong. Hong Kong version of Alipay, AlipayHK users can remit money to Philippine wallet Gcash through blockchain technology.

The first transaction was completed by Filipino Grace, who has worked in Hong Kong for 22 years, taking only 3 seconds. In the past, it takes 10 minutes to several days. Many witnessed this moment, including Hong Kong’s Financial Secretary Chen Maobo, CK Hutchison Holdings Limited managing director Huo Jianning, Chairman of the Board of Directors of Alibaba Ma Yun, Chairman and CEO of Ant Financial Jing Xiandong, etc.

With the support of blockchain technology, cross-border remittance can be done like local transactions, real-time transfer, cheap, less trouble, safe, and transparent. Following charity donations, traceability of food, rent management, another innovative exploration by Ant Financial in the field of Blockchain.

Blockchain technology has redefined the definition of  “Cross-Border Transaction” making traditional cross-border remittance business easier.

 

At the press conference, Jack Ma  recalled a request for help from the Philippines that he received many years ago saying: “When can we use Alipay to remit money home? The transfer fee is too expensive here.” Mr. Ma also said that in the past year, he has asked the Chairman Wei Xiandong of the Ant Financial at least ten times on how to solve this problem and is very happy to witness this amazing moment.

Traditional cross-border remittance business has many obstacles: because of the involvement of participating institutions, laws, regulations and exchange rates, thus the process is complicated, usually takes 10 minutes to several days to arrive.

To solve these obstacles, AlipayHK and Philippines’s e-wallet Gcash have been looking for solutions until they have met with the blockchain team of Ant Financial. As of 2017, Ant Financial is the most blockchain patented company, and constantly expanding the boundaries of blockchain applications.

According to reports, banks have internally implemented blockchain cross-border remittance previously, but not cross-institutionally; and the transaction method between user and bank is still traditional; There are also cross-border remittance based on cryptocurrency, but due to the uncertain fluctuation of the supply and demand of coins and value of currency in a short period of time, it is difficult to mass commercialize.

This time, the cooperation of AlipayHK and Gcash, have become the world’s first e-wallet to use blockchain technology, and Standard Chartered Bank is responsible for day-end fund clearing and foreign exchange. Gcash users can spend immediately after the arrival of the transaction. Cross-border remittances can also be as good and as fast as domestic transactions, 24 hours nonstop, saves money, safe and transparent.

 

“Warm” technology for the people. From Hong Kong to the Philippines, blockchain cross-border remittances has taken the first step, it will be able to benefit users from other countries and regions in the future.

 

“Blockchain” has been the most popular technology within the cyber industry in the past year, many have thought that it would be a shortcut to being successful, expressed by Jing Xiandong and that these bubbles will burst, then the true value of blockchain will surface: creating multi trust mechanism, solving credible problems such as data, goods, assets, contracts, and people, and promote efficient collaboration across institutions and individuals.

At the press conference, he introduced Ant Financial’s blockchain manifesto “Three do’s and Three don’ts”: To solve real problems with social value; To overcome the technical obstacles created by applicating blockchain technology to mass commercialization; To build a blockchain ecosystem with partners. Don’t be “Irrelevant Currency”; Don’t make technical applications that violate the law and regulations; Don’t do anything that harms user data security and privacy.

The hardest obstacle of borderless transactions is the real problem of social value. Because it involves multi participants, the traditional serial mode requires careful confirmation of remittance information, taking up time and energy, but by blockchain, it upgrades parallelly through distributing shared ledgers and smart contracts, achieving real-time sharing of transaction information, saving a lot of delivery time and reconciliation settlement cost, making real-time reconciliation, low cost, good exchange rate possible.

 

In addition, because blockchain has technical features such as unchangeable account and smart contracts, enabling real-time, credible information verification channels for all parties involved in cross-border remittances, it makes remittances safer and traceable.

 

At the same time, due to the privacy protection model adopted by the alliance chain, user information can be more comprehensively guaranteed. Chainblock technology also reduces risk, enabling cross-border remittances to be more transparent under supervision and be more efficient in risk control. Hong Kong and Philippines supervision authority can monitor individual cross-border remittance routes, improving the timeliness and effectiveness tremendously.

At the press conference, Jing Xiandong said that he was very happy to see blockchain technology changing the lives of ordinary people. He also said that as a technology company, Ant Financial believes that to change the world is not only technology, but the mission, dreams, and values behind technology.

Jim Xiandong inducted that Ant Financial’s technology value can be described as: “Warm Technology”, making finance more affordable, transparent, simple, safe, trustworthy through technology, spreading financial goodwill to everyone and every micro-enterprise.

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