Pakistani banks have recently launched blockchain technology to fight against money laundering. The move comes as a response to the increasing concerns around financial crimes, including money laundering and terrorist financing, which have been on the rise in the country.
Achieving the huge milestone, Abid Qamar, the spokesperson of the State Bank of Pakistan (SBP) stated:
“The deployment of blockchain technology, however, does not mean Pakistan has allowed international financial transactions in bitcoin and cryptocurrencies, which remain banned in the country. The central bank has allowed the use of the technology which has thousands of users”
Another statement by the Telenor Microfinance Bank read:
“Telenor Microfinance Bank, in partnership with Valyou of Malaysia, has introduced Pakistan’s first blockchain-based cross-border remittance service, powered by the industry-leading blockchain technology developed by Alipay – the online payment platform operated by Ant Financial Services Group”
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What is blockchain technology?
Blockchain technology is a decentralized system that enables secure and transparent record-keeping of transactions. It has gained popularity in recent years due to its ability to provide a tamper-proof, immutable ledger that can be accessed by all parties involved in the transaction.
The use of blockchain technology by Pakistani banks will help them to monitor transactions and detect any suspicious activity in real time. This will enable them to take swift action to prevent money laundering and other financial crimes.
A significant improvement in the banking system of Pakistan
Furthermore, the implementation of blockchain technology is expected to improve the overall efficiency of the banking system in Pakistan. It will reduce the time and costs associated with traditional record-keeping and reconciliation processes, while also increasing the accuracy and transparency of financial transactions.
The move by Pakistani banks to adopt blockchain technology is a significant step towards combating financial crimes and improving the overall financial stability of the country. It is expected to have a positive impact on the economy and enhance Pakistan’s reputation in the global financial markets.
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