The Monetary Board Of The Central Bank Of Sri Lanka To Use Blockchain For KYC

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • The Monetary Board of the Central Bank of Sri Lanka will be selecting three software and technology firms to develop a PoC for a Blockchain based KYC shared platform. 
  • The CBSL had announced a call for the applicants who would contribute towards the development of the Proof of Concept (PoC) of the shared KYC.
  • After getting the final approval from the monetary board, the firms will begin the development work.

The Monetary Board of the Central Bank of Sri Lanka will be selecting three software and technology firms to develop a Proof of Concept (PoC) for a Blockchain based Know Your Customer (KYC) shared platform. 

The Central Bank of Sri Lanka is the trusted and reliable financial institution in Sri Lanka. However, the CBSL is not an incorporated body. All the corporate powers are vested in the Monetary Board. The board has the power to regulate and make decisions related to the management and administration of the Central Bank. 

Shared KYC Aimed To Improve The Efficiency Of The Banks

Few months ago, the CBSL had announced a call for the applicants who would contribute towards the development of the Proof of Concept (PoC) of the shared KYC. The new service would allow banking institutions as well as the government to simultaneously share and update the customer information on a Blockchain. The open call read that CBSL along with the top ranked Sri Lankan FIT companies are planning to implement the Blockchain technology to smoothen the KYC procedures in the banks. The project would hugely benefit several use cases and aimed at increasing the efficiency of the financial sector. 

CBSL Received Overwhelming Response From Local As Well As Foreign Firms

Recently, Dr. Kumaratunge, the Director of Payments and Settlements Sri Lanka Central Bank has announced that they received response from 36 firms who are willing to contribute to the project voluntarily. The Director in LankaClear (Pvt.) Ltd in Colombo said that they have invited many software companies to develop the National project. The response from both local as well as international firms have been overwhelming. Ultimately, they have shortlisted three suitable applicants and one of them is an experienced international firm. 

The Firms Will Begin The Development Soon

After getting the final approval from the monetary board, the firms will begin the development work. The companies will have to submit a report to the Payments and Settlements Department of the CB. The report concluded upon the completion of the PoC which would be further forwarded to the National Payment Council and the Monetary Board. Kumaratunge has confirmed that many banking institutions of Sri Lanka have already given their will to join the project. The new service could possibly lessen the cost that is required to verify the documents of the new customers. 

The KYC is an important tool when it comes to fighting potential financial crimes such as money laundering terrorist financing activities. As a result of which analysts think that KYC conducted by a single bank is not reliable. However, the CBSL launched the digital onboarding services for the customers using the digital KYC technology.

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