Sri Lanka to advance financial sector with blockchain’s help

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The Central Bank of Sri Lanka (CBSL) is looking for companies that are able to build a proof of concept shared Know-Your-Customer (KYC) platform to be used in the banking industry.

In a statement, the central bank said, “The increasing demand for digitalized financial services has created an opportunity for Sri Lanka to evaluate the possibility of adopting Blockchain Technology to further advance Sri Lanka’s financial sector.“

The central bank is specifically reaching out to the country’s tech industry to help develop a system that can be used to accommodate the needs of customers: “The Central Bank of Sri Lanka (CBSL) together with experts in Sri Lanka’s Financial and Information Technology (IT) industries, is assessing the possibility of applying Blockchain Technology to streamline Know-Your-Customer (KYC) processes at financial institutions. It is expected that this would facilitate several potential use-cases that will increase efficiencies in the financial sector. It is also expected that it would help increase financial inclusion in Sri Lanka.”

Tech companies interested in assisting with the project are required to have at least two years of experience in developing these kinds of projects, and have a “proven track record of developing and launching mobile applications.”

This is another example of countries embracing blockchain technology as a solution to create greater security, efficiency, and access for consumers. In India, the Minister of State for Electronics and IT (MeitY) recently announced that the government is looking to create a new national framework that will help to expand the use of blockchain technology throughout India.

MP Parvesh Sahib Singh Verma said, “MeitY has identified Blockchain Technology as one of the important research areas having application potential in different domains such as Governance, Banking and Finance, Cyber Security and so on.”

China also looks to get on board in using this technology. In October, President Xi Jinping acknowledged in a statement that “blockchain’s future is here,” although he cautioned Chinese citizens to be “rational” about the use of this new technology. The People’s Bank of China stated recently that they are looking into new technologies to improve the country’s fintech sector, and the use of blockchain technology is one solution.