Banks in Pakistan have created a KYC platform based on blockchain technology
The Pakistan Banks ’ Association( PBA), a group of 31 traditional banks operating in Pakistan, has inked off on the development of a blockchain- grounded Know Your client( KYC) platform. The move aims to strengthen the country’s Anti-Money Laundering( AML) capabilities while fighting terror backing – an action led by the State Bank of Pakistan( SBP).
As reported by the Daily Times, the PBA inked a contract on March 2 to develop Pakistan’s first blockchain– grounded public eKYC banking platform. The Avanza Group has been assigned to develop the blockchain- grounded eKYC platform named” Consonance,” which will be used by member banks to regularize and change client data via a decentralized and tone- regulated network.
This will enable banks to assess being and new guests, and to partake client details grounded on concurrence. The member banks of PBA include transnational establishments similar as the Industrial and Commercial Bank of China, Citibank, and Deutsche Bank. The blockchain platform will ameliorate functional edge, primarily aimed at perfecting client experience during onboarding.
Joining other countries in the race to develop a central bank digital currency( CBDC), Pakistan has lately inked new laws to insure the launch of a CBDC by 2025. The SBP will issue licenses to electronic plutocrat institutions for CBDC allocation.” These corner regulations are a testament to the SBP’s commitment toward openness, relinquishment of technology, and digitization of our fiscal system,” said Deputy Governor of SBP Jameel Ahmad.
The use of blockchain technology for KYC purposes offers multitudinous benefits to the banking assiduity, including reduced costs and enhanced security. The development of Pakistan’s first blockchain- grounded public eKYC banking platform is a significant step towards the country’s digitalization of its fiscal system.
By homogenizing and participating client data, Pakistan’s banking assiduity will be better equipped to fight plutocrat laundering and terror backing while perfecting client experience during onboarding. Overall, the development of the blockchain- grounded KYC platform demonstrates the PBA’s commitment to furnishing its members with slice- edge technology to ameliorate operations and client experience. The move also reflects Pakistan’s amenability to embrace blockchain technology as a means of strengthening its fiscal system and combatting fiscal crimes.
