Mar 06, 2023
PBA Signs Contract to Develop Pakistan’s First Blockchain-Based National eKYC Platform
On the 2nd of March, 2023, the Pakistan Banks’ Association (PBA) — a group of 31 traditional banks operating in Pakistan — signed off on a project contract to develop the country’s first blockchain-based Know Your Customer (KYC) platform. The move was reported by the Daily Times and is part of an initiative led by the State Bank of Pakistan (SBP) to strengthen Anti-Money Laundering capabilities and counter terror financing.
The PBA is comprised of international banks such as the Industrial and Commercial Bank of China, Citibank, and Deutsche Bank. The blockchain platform, called “Consonance”, is intended to improve operational efficiencies and optimize customer experience during onboarding.
The Avanza Group has been tasked with developing the blockchain-based eKYC platform, which will enable member banks to securely share customer data via a decentralized and self-regulated network. However, the customer details will only be shared with the customer’s consent.
The move comes as Pakistan joins other countries in the race to develop a central bank digital currency (CBDC). The SBP has signed new laws to ensure the launch of a CBDC by 2025 and will issue licenses to electronic money institutions for CBDC issuance. Deputy Governor of SBP Jameel Ahmad commented on the landmark regulations, saying, “These landmark regulations are a testament to the SBP’s commitment toward openness, adoption of technology and digitization of our financial system.”
The development of the blockchain-based KYC platform and the launch of a CBDC may have far-reaching implications for the financial sector in Pakistan. It could open up opportunities for NFT promotion, as well as NFT marketing, and create a new market for selling NFTs. Additionally, the use of a blockchain-based platform could enable more efficient NFT marketing campaigns on Twitter, and may lead to the emergence of a new web3 agency specialising in NFT marketing.
The development of the blockchain-based KYC platform and the launch of a CBDC could also lead to a more secure and transparent financial system in Pakistan. The blockchain-based KYC platform will enable banks to quickly and securely verify customer identities, while the CBDC will allow for faster, more secure payments and transfers.
The PBA’s move to develop a blockchain-based KYC platform and the SBP’s plans to launch a CBDC in Pakistan are momentous occasions that could have a long-lasting effect on the country’s financial landscape. They could enable the emergence of a new web3 economy, while also providing a secure platform for conducting financial transactions.
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