In a move spearheaded by the State Bank of Pakistan (SBP), the Pakistan Banks’ Association (PBA) – an association of 31 traditional banks in the country – has officially approved the construction of a blockchain-based Know Your Customer (KYC) platform. This groundbreaking initiative is designed to enhance Anti-Money Laundering regulations and combat terror financing within Pakistan, providing much-needed security and protection for all citizens.
This New KYC Platform Called Consonance Will Advance Pakistan Into The Blockchain World
The Daily Times recently announced that the PBA had taken a monumental step forward to create Pakistan’s first blockchain-based national eKYC banking platform. Avanza Group is spearheading this venture, named “Consonance,” as member banks will have access to an efficient and self-governed system that allows them to swap customer data with consent from their customers. Having such a structure in place gives financial institutions increased opportunities for assessing both existing and potential clients quickly and securely.
Pakistan recently joined the competitive race to launch a Central Bank Digital Currency (CBDC) by 2025, having signed new legislation supporting this goal. The member banks of PBA—including reputable names such as Industrial and Commercial Bank of China, Citibank, and Deutsche Bank—will benefit from utilizing blockchain technology to improve operational efficiencies while simultaneously increasing customer satisfaction throughout onboarding procedures. The State Bank of Pakistan (SBP) is taking groundbreaking measures to provide licenses for issuing Central Bank Digital Currencies (CBDCs). SBP Deputy Governor Jameel Ahmad proclaimed, “These regulations demonstrate our commitment toward embracing technology and advancing digitalization in our financial system.” This embrace of modernity will be immensely beneficial as we strive towards making financial services more accessible to citizens across Pakistan.
Pakistan’s New KYC Platform Also Aims To Avoid Funding Illegal Acts Like Terrorism
Blockchain technology offers extensive advantages to the banking sector, including reduced costs and improved security. By creating Pakistan’s first blockchain-based national eKYC platform, financial system digitalization is now an achievable reality. Not only will this standardize and share customer data, helping fight against illegal activities like money laundering or terror financing, but it will also enhance overall customers’ experience during onboarding processes!
To showcase its resolve to give members innovative technology to improve customer service and operations, the PBA made a blockchain-based KYC system. This maneuver also shows Pakistan’s readiness to leverage blockchain tech to make its financial system safer and thwart economic crimes.
