The Pakistan Banks’ Association- which is a group of 31 traditional banks in operation in the country- has reportedly signed off on creating a blockchain-based Know Your Customer platform.
On 2nd March, the PBA signed this project contract to create the first blockchain-based national eKYC banking platform in the country, as it was reported by the Daily Times. This move would also aim at strengthening the Anti-Money laundering security features which would grow to be quite adept at countering terror financing- which is an initiative that was launched by the State Bank of Pakistan.
Pakistan To Create Blockchain-based eKYC System
The member banks in collaboration with the traditional banks of Pakistan include several international banking institutions such as the Commercial and Industrial Bank of China, Deutsche Bank, and Citibank. Moreover, the blockchain platform will also be geared towards improving operational efficiencies, which are also aimed at improving the experience of the customer during onboarding.
Interestingly, it is the Avanza Group that has been given the task to create this eKYC platform called Consonance- which will be used by all the member banks to exchange and standardize the data through a self-regulated and decentralized network. However, it has also been highlighted that all the customer details will be put out based on content- which will allow banks to assess new and existing customers.
Pakistan has joined several other countries to create the central bank digital currency, which is why they signed the new laws to ensure that they could launch one by 2025. The SPB will also be issuing licenses to most of the electronic money institutions for the issuance of CBDC.
