The Central Bank of Sri Lanka has started developing a blockchain-based platform for customer identification

The Central Bank of Sri Lanka has selected three startups that have started to develop a proof of concept (PoC) system for customer identification in the banking and public sector.

The Central Bank intends to create a blockchain-based mechanism that will allow government agencies, banks and financial organizations to securely exchange customer data throughout the country. Director of the Department of payments and settlements of the Central Bank of Sri Lanka D. Kumaratunge (D. Kumaratunge) he said that earlier the Bank invited software development firms that are ready to participate in the work on the national project.

The Bank has received 36 applications from local and international organizations, from which three suitable candidates have already been selected. Kumaratunge did not release the names of the selected firms, but said that one of them is a foreign technology firm.

The development of the new platform will take from six to nine months, with firms working on the project for free. When the PoC is completed, the Central Bank of Sri Lanka will test the platform in conjunction with the country’s National payment Board and several local banks. Kumaratunge expects that the blockchain will speed up the registration of new clients, reduce administrative costs and expand access to financial services in the country.

Recall that in November last year, the financial action task Force (FATF) presented a draft guide on digital identification for government agencies and regulated entities to ensure compliance with the anti-money laundering (AML) and terrorist financing (CFT) rules. This guide also applies to companies working in the field of cryptocurrencies and blockchain.