Pakistan Banks’ Association (PBA) – a group of 31 traditional banks operating in Pakistan – is entering into the development of a blockchain-based platform for its Know Your Customer (KYC) initiative.
On March 2, PBA signed a project contract to develop Pakistan’s first blockchain-based eKYC (electronic Know Your Customer) national banking platform, Daily Times reported. The move is aimed at strengthening anti-money laundering (AML) capabilities while fighting terror financing – an initiative led by the State Bank of Pakistan (SBP).
Member banks include international companies such as the Industrial and Commercial Bank of China, Citi bank and Deutsche Bank. In addition, the blockchain platform will improve operational efficiency – especially in improving the customer experience during the onboarding process.
Important event!
Pakistan Banks Association (PBA) and Avanza Group signed a Project Contract for Pakistan’s first Blockchain-based National Banking Platform in Karachi on March 2, 2023.#AdvanceGroup #AvanzaInnovations #AvanzaSolutions #demystifyingthefuture #PBAeKYC pic.twitter.com/2XMcxHoanL
– Avanza Group (@avanzagrp) March 3, 2023
Avanza Group has been commissioned to develop a blockchain-based eKYC platform named ‘Consonance,’ which member banks will use to standardize and exchange customer data through a decentralized and self-regulated network. However, customer details will be shared based on consent – allowing the bank to assess existing and new customers.
related: India explores offline functionality of CBDCs – RBI executive director
Joining other countries in the race for an internal central bank digital currency (CBDC), Pakistan recently signed a new law to ensure the launch of a CBDC by 2025.
The state bank, SBP, will issue licenses to EMIs for CBDC issuance. “This landmark regulation is proof of SBP’s commitment to openness, technology adoption and digitization of our financial system,” SBP Deputy Governor Jameel Ahmad said in this regard.