The Central Bank of Sri Lanka has reportedly reached an agreement with companies to begin its pioneer blockchain project. The country is looking to initiate the development of blockchain-based shared KYC Proofs-of-Concept (PoC), to facilitate advancements in the country’s financial system.
As Colombopage reported on Wednesday, the agreement to develop a blockchain-based shared KYC solution was reached on July 7. About 40 local and international companies showed interest to voluntarily participate in the project when the project was advertised by the central bank. However, only three companies were selected to join in the development.
The blockchain-based shared KYC PoC is essential for Sri Lanka’s financial system. Using the blockchain solution, the central bank can be able to efficiently manage several operations, such as data collection, validating, storing, and sharing of customers’ KYC information in a secured framework.
Advancement in financial services
Having studied the possibility of integrating the technology in Sri Lanka’s financial system, the bank is positive that the development of the blockchain-based shared KYC will open more advancements opportunities for the country. The Governor of Sri Lanka’s central bank added in the report:
As we live in a world where every aspect of our lives is becoming digital, the Central Bank has taken a lot of effort to improve the digital financial infrastructure of Sri Lanka. Evaluating the feasibility of using a technology such as Blockchain to securely share KYC information has the potential to vastly increase the digital financial inclusion of Sri Lankans.
Besides coming as a benefit to Sri Lanka, Mr. R A A Jayalath, one of the executives at CBSL opined that the development of the blockchain-based shared KYC PoC would equally improve the understanding of blockchain application to financial systems on a global scale.