The State Bank of Pakistan (SBP) has announced plans to develop a blockchain-based Know Your Customer (KYC) system for banks and other financial institutions. The new system will enable faster, more secure, and more efficient customer onboarding, as well as help combat money laundering and terrorist financing.

Blockchain-based KYC system to revolutionize customer onboarding

The development of a blockchain-based KYC system is a major milestone for Pakistan’s financial sector. The new system will replace the current manual process, which is time-consuming and inefficient, with a digital solution that offers faster and more secure customer onboarding. The blockchain technology used in the new system will allow banks and other financial institutions to verify customer identity in real time, eliminating the need for physical documents and reducing the risk of fraud and identity theft.

The new system will also help combat money laundering and terrorist financing by providing a more secure and transparent platform for verifying customer identity. With the use of blockchain technology, financial institutions will be able to track customer transactions more effectively and monitor for any suspicious activity, allowing for better compliance with regulatory requirements.

The development of the blockchain-based KYC system is part of the SBP’s broader efforts to promote financial inclusion and enhance the efficiency and transparency of the country’s financial sector. It is expected to have a significant impact on the banking and financial landscape of Pakistan, driving innovation and growth in the industry.

This is a major step forward for Pakistan’s financial sector. The new system will enable faster, more secure, and more efficient customer onboarding, as well as help combat money laundering and terrorist financing. The adoption of blockchain technology in the financial industry is a global trend, and Pakistan is poised to take advantage of this emerging technology to revolutionize its banking and financial landscape. By promoting financial inclusion and innovation, Pakistan’s blockchain-based KYC system has the potential to drive economic growth and create new opportunities for businesses and consumers alike.