The ongoing developments in blockchain technology have appeared lucrative to organizations across the globe. Recently, Pakistani authorities decided to include blockchain technology in one of the most important initiatives.
Sources reveal that the Pakistan Banks’ Association, a group of 31 traditional banks operating in the country, has agreed to the development of a blockchain-based platform for Know Your Customer (KYC) initiatives.
According to the local media reports, the PBA has signed the project contract for developing Pakistan’s first blockchain-based national eKYC (electronic Know Your Customer) banking platform. This move from the authorities aims at strengthening anti-money laundering (AML) capabilities while countering terror financing, an initiative led by the State Bank of Pakistan (SBP).
The announcement revealed the names of the member banks and it also includes international establishments such as the Industrial and Commercial Bank of China, Citi bank, and Deutsche Bank. Moreover, the blockchain platform will improve operational efficiencies that will be primarily aimed at improving customer experience during the onboarding process.
Avanza Group, which has been tasked to develop the blockchain-based eKYC platform, announced the project on Twitter. It said that the platform will be named “Consonance,” and will be used by member banks to standardize and exchange customer data via a decentralized and self-regulated network. However, the customer details will be shared based on consent — allowing banks to assess existing and new customers.
Pakistan is trying to adapt to new technology and use it for efficiency. In December, the country also announced that it will launch its central bank digital currency (CBDC) by 2025. To secure the timely issue of a CBDC throughout the following years, the State Bank of Pakistan (SBP) approved new rules for Electronic Money Institutions or EMIs (non-bank entities that provide digital payment instruments). According to a local media outlet, the World Bank assisted Pakistan in creating the new legislation.
In recent times, the scope of blockchain technology has been on a consistent rise and is expected to grow in the future as well. Todayq News reported a survey from CasperLabs, a blockchain-based firm, and Zogby Analytics, a market research agency, which stated that the sentiments around blockchain adoption are positive, especially among enterprises. The figures revealed that nearly 90% of the businesses surveyed reported deploying blockchain technology in some capacity, whereas 87% opined that they plan to invest in the coming year.
Interestingly, it is not just the firms who are interested in blockchain technology, several nations like Colombia, Turkey, China, etc. have adopted it too. In October, Recep Tayyip Erdoğan, President of Turkey, announced the “e-Human project,” powered by blockchain technology, ahead of the country’s national blockchain summit. The e-Human project will be based on blockchain technology to integrate the services, data, and abilities used by the systems under substantial safety and protection. It is a digital service point where the Turkish president can share information related to the government’s services.