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Blockchain technology mandatory for banking care

Blockchain technology mandatory for banking care

The emerging modern blockchain technology is distributed ledger technology which has a great future in Pakistan to revolutionize the industries, services and banking sector. Both the State Bank of Pakistan and commercial banks can deploy it to enhance the efficiency, safety and security, hence ultimately transparency of the banking transactions. So far various sectors are reluctant to adopt it, but the rest of the world has posed numeral models which helped the banking sector for advancement. In the country, the banking sector is regularly addressing many problems which include:

Blockchain technology in Pakistan can be deployed to address the underlined challenges and improve the financial and banking sector. Many stakeholders in Pakistan wondering about blockchain implications regarding its future, safety, and government regulations. Some of the core patterns of blockchain can be used in the financial and banking sectors of Pakistan:

State Bank of Pakistan has initiated a plan to use blockchain technology to generate CBDC which will be efficient, secure, and more transparent than the conventional current monetary system.

Pakistan’s financial and banking sectors are still in the early stages to adopt blockchain technology, and it has great potential in the near future to revolutionize the way banks operate.

The blockchain would make financial transactions cost-effective, quick, and much safer and it would help to advance financial inclusion. It would assist to automate and streamline various banking procedures which will lead to higher efficiency. It is a very tamper-proof, safe and secure comprehensive framework, that will help to protect the customers’ dataset and financial & banking transactions. It reduces the cost of financial and banking transactions that will benefit banks, customers, and other stakeholders; blockchain also increases transparency and trust in the financial banking sector.

In Pakistan, as historical figures show that each new technology has to face certain limitations and restrictions; so does blockchain technology. Lack of awareness related to this technology amongst bankers and business communities in the country prevails. This challenge needs to be resolved in order to foster the adoption of blockchain technology in the financial and banking sectors.

The legal regulatory environment is still evolving; it is a very safe and secure mechanism. Moreover, the technology of blockchain is not mature and is evolving. This is a challenge which requires in order to ensure that blockchain technology is very reliable and scalable.

In the banking sector, blockchain technology has great futuristic potential to revolutionize the overall financial and banking sectors of Pakistan. It would assist to improve the security, efficiency and transparency of financial and banking transactions. But a number of encounters need to be addressed before this modern technology can be adopted widely in the financial and banking sectors.

The potential of blockchain in the future in the financial and banking sector in Pakistan is very bright, due to its various characteristics and adaptability. State Bank, Ministries of IT, law, and finance are core stakeholders for the smooth implementation and regulations of the blockchain in Pakistan. In globalization, the technology matures and the regulatory environment evolves, more and more financial sectors and banks are adopting it.

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