The e-KYC system has been specifically designed to facilitate quick and efficient online verification of clients’ personal information. The SBP has assured that the employees of the Central Bank of Pakistan will not have access to any confidential client data held by commercial banks.
“Given the significance and benefits of this platform for both banks and customers, we strongly encourage all financial institutions in the country to join e-KYC and allocate the necessary financial, technological, and human resources towards its implementation,” stated an official from the SBP.
The development of this national blockchain platform was spearheaded by the Pakistan Banks Association (PBA) in collaboration with Avanza Group. It has undergone extensive testing since early 2023.
It is important to note, however, that the introduction of blockchain technology within the financial sector does not alter the Pakistani government’s strict stance on cryptocurrencies. The Pakistani Finance and Revenue Minister, Aisha Ghaus Pasha, reiterated that cryptocurrency services will not be legalized in the country.