SBP to Implement Blockchain Technology Combat Cyber Crimes

In a visionary move, it has been revealed that experts at State bank of Pakistan (SBP) are studying the blockchain technology solution model. SBP, along with the commercial banks, is considering to adopt the blockchain technology in order to create a safety net for electronic financial transactions from cyber-crimes. Blockchain technology is a technique of recording data – a digital ledger of financial transactions, agreements, contracts. With this technology, the contracts are rooted in form of digital codes.

The news has been shared by the Executive Director-Banking Supervision Group at the State Bank of Pakistan (SBP), Mr. Inayat Hussain on Wednesday. Speaking at the 15th Innovative Diebold Nixdorf e-banking 2017 Conference, he clarified that in this era of technological advancement, there is an obligatory need to inculcate the new technologies to our systems for efficient trades; moreover, this technology may be extended to the commercial banks as well. He said:

“We may adopt the blockchain system to help trades. Other banks may approach SBP and tell us if they want to use the new technology anytime,”

Mr. Hussain also emphasized on the revising the scope of duties of Chief Information Officers for promoting efficiency in countering the issue of cyber-crimes. The conference had been organized by Total Communications in Collaboration with Pakistan Software Houses Association.

It is pertinent to note this significant feature of blockchain technology that the ledgers are saved in multiple systems. It’s distributed across several, hundreds or even thousands of computers around the world. Another feature is that it is easily accessible, and of course, transparency is also there.

Syed Ali Raza Shah, Minister of Information Technology and Telecom, announced that by the end of 2018, the whole country would be provided with the facility of internet. Briefing the audience about the development of IT infrastructure, which will make an end to the lagging the telecom sector, he said:

“There will not be a single place left without mobile broadband by the end of 2018. Pakistan will be made 100 per cent internet provided country.”

After the updated Payment System Rules 2016, despite its slow pace, the process of transition towards adopting new technology can be observed. Mr. Hussain commented that now banks are adopting the new technology according to international standards in line with the updated rules introduced in October 2016.

Since then we have provided permission to three entities to play their role as Payment System Operators and Service Providers

image Mohsin Jaffery / flickr

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