Pakistan Banks Association Agree on Blockchain-based KYC System Development

Pakistan Banks Association (PBA), a group of 31 traditional banks operating in Pakistan have signed an agreement to develop a blockchain-based know-your-customer (KYC) platform. On March 2, the PBA signed a project deal to develop Pakistan’s first blockchain-based national ekYC banking platform, The Daily Times reported. The move, which aims to strengthen anti-money laundering capabilities while tackling terrorist financing, is an initiative led by the State Bank of Pakistan (SBP).

Member banks include international institutions such as the Industrial and Commercial Bank of China, Citibank and Deutsche Bank. In addition, the blockchain platform will increase operational efficiency, with the main goal of improving the customer experience during onboarding.

Avanza Group has been tasked with developing a blockchain-based eKYC platform called Consonance, which member banks will use to standardize and share customer data over a decentralized and self-regulating network. However, customer data is shared subject to approval, allowing the bank to assess existing and new customers.

Pakistan Plans to Launch CBDC

In a race to develop a central bank digital currency (CBDC) alongside other countries, Pakistan recently signed new legislation to ensure the launch of a CBDC by 2025.

The SPB will issue CBDC issuance licenses to e-money institutions. “These landmark regulations are a testament to SBP’s commitment to openness, technology adoption and the digitization of the financial system,” said SBP Deputy Governor Jameel Ahmad.