Pakistan's Central Bank Launches Blockchain e-KYC Platform for Banks
Date: 2024-01-01 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
In a significant development, Pakistan's State Bank (SBP) has introduced the e-KYC platform, aimed at revolutionizing the way banks verify customer information. The platform will enable commercial banks to harness blockchain technology for more efficient financial monitoring and control processes.
The e-KYC system is designed to facilitate quick and online verification of customer personal information, all while maintaining the confidentiality of customer data from commercial banks' employees, as assured by the regulator.
Recognizing the platform's importance for both banks and customers, an SBP representative stated, "Given the significance and usefulness of the platform for both banks and customers, all financial institutions in the country are recommended to join e-KYC and allocate the necessary financial, technological, and human resources for it."
The national blockchain platform was developed by the Pakistan Banks' Association (PBA) in partnership with Avanza Group and has been in a test phase since the beginning of 2023.
It's important to note that the adoption of blockchain technology by credit and financial organizations in Pakistan does not alter the government's stance, which has completely banned all cryptocurrency services. Previously, Aisha Ghaus Pasha, the Minister of Finance and Revenue, declared that cryptocurrency would "never be legalized in Pakistan."
