Blockchain technology will be making its way to Malaysian wholesale and remittance company Metro Money Exchange shortly. The licensed enterprise signed a deal with Dragonfly Fintech to use the New Economy Movement’s blockchain technology.
The name Dragonfly Fintech will ring a bell for some, as the company is using a hybrid form of distributed ledger technology. On the one hand, there is the New Economy Movement blockchain, combined with Mijin. The latter is a private blockchain capable of recording several thousands of transactions per second.
Dragonfly Fintech Uses Hybrid Blockchain Solutions
Now that Metro Money Exchange has partnered with Dragonfly Fintech, both companies will integrate this technology into the remittance and wholesale industries.
In fact, the entire remittance platform — which covers wholesale foreign exchange and receipt of funds — will use this blockchain solution.
That is quite significant news, considering how the remittance market in Malaysia is worth roughly $10 billion USD per year.
Mjin blockchain technology is a good fit for banks, but it can be used in the broader spectrum of finance. So far, SBI Sumishin Net Bank publicly acknowledged they are using the Mijin blockchain for testing purposes. A total of 2.5 million virtual bank accounts were created during this trial. Moreover, the distributed ledger proved it could handle over 90,000 transactions per second.
Dragonfly Fintech CEO Lon Wong told the media:
We have been ahead of the pack and painstakingly designed this solution for the last three years. With a proven solution, we are able to demonstrate a world’s first in setting the standards right, i.e., establish one’s autonomous private chain and then integrate with the larger, massive network of financial institutions, transacting potentially hundreds of thousands of Tx/s at the system level, all on the blockchain while maintaining independence. This remittance service is only one part of a spectrum of solutions Dragonfly is providing, which includes enabling a country to issue its own sovereign digital money.
It is rather interesting to see the New Economy Movement technology having an easier entry into the financial world. Although the New Economy Movement project has flown under the radar, the ecosystem’s market cap has greatly increased. In fact, the token is now the number 6 ranked cryptocurrency, according to CoinMarketCap.
Competition for Bitcoin?
Financial institutions have not taken a liking to Bitcoin technology in its open form and worked on private solutions instead.
Since there was no Bitcoin involvement in the financial sector per se, there is no “competition” to speak of.
However, that does not necessarily mean Dragonfly Fintech will succeed with Mijin/NEM technology either.
It is positive to see Malaysian companies embracing Fintech and blockchain technology in general, though. Not too long ago, the Malaysian Central Bank announced they will adapt Fintech regulation in the country. This partnership between Dragonfly Fitness and Metro Money Exchange seems to be a result of this positive attitude.
What are your thoughts on this private blockchain solution making its way to remittance and wholesale in Malaysia? Let us know in the comments below!
Source: Pr Newswire
Images courtesy of Dragonfly Fintech, Shutterstock.