The PBA and Avanza Group have collaborated to establish a groundbreaking blockchain-based eKYC banking data exchange platform.
Under the guidance of the State Bank of Pakistan, the PBA will oversee the project, with the ultimate goal of enhancing anti-money laundering and terrorist financing measures.
By implementing this platform, commercial banks can streamline their services, especially when it comes to opening accounts, which will result in improved customer satisfaction and increased access to banking services.
The blockchain-powered eKYC platform from Avanza Group will provide a decentralized and self-regulating network that allows banks to exchange data more efficiently, with customers’ consent.
Furthermore, all participating banks will have access to secure data stored on the blockchain, enabling them to evaluate both new and existing customers.
The Governor of the Central Bank of Pakistan, Reza Baqir, has praised the potential of blockchain technology to solve many financial industry problems, but remains skeptical of cryptocurrencies, which he believes can facilitate money laundering.
The Central Bank of Pakistan has also revealed plans to develop its own digital currency by 2025, which could have a significant impact on the country’s financial landscape.