The Monetary Board of the Central Bank of Sri Lanka is close to starting development of a blockchain platform expected to speed the processing of bank users’ ID information.

  • The Monetary Board has now shortlisted three software development firms to be tasked with designing a proof-of-concept (PoC) know-your-customer (KYC) platform, local news source the Daily Mirror Online said Thursday.
  • The final decision and the start of development are expected "shortly,” said D. Kumaratunge, Central Bank director of payments and settlements, at a Tuesday event.
  • The KYC platform is planned to allow the banking sector and the government to share and update bank customer data in real time on a blockchain. 
  • Kumaratunge said several banks have given their consent to join the project.
  • The open call was on a voluntary basis; 36 national and international candidates applied for the project last November. One of the three finalists is a foreign tech firm.
  • The development of the system is expected to take anywhere between six and nine months to complete.
  • The project is expected to allow banks to onboard new customers without delays for manual processing, as well as save costs associated with traditional paper-based methods of verifying documents.
  • Sri Lanka has been taking steps to improve its financial sector to meet international standards.
  • In October 2019, the nation was removed from the Financial Action Task Force’s anti-money laundering/counter the financing of terrorism (AML/CFT) “strategic deficiencies” blacklist, to which it had been added in 2017.

Also read: World’s Oldest Central Bank Reviews Possible Digital Currency With Mixed Results

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.