Blockchain technology is constantly making its way to the banking sector after Malaysia Central Bank stated that it was planning to integrate the system into the country’s banking sector. The bank’s deputy governor stated that the development of the system was underway in a speech last Tuesday.
Jessica Chew Cheng who is the deputy governor was giving a speech at the Asia Banker Digital Finance Convention 2018. She stated that 9 domestic banks had come together to build a trade finance Blockchain project. According to Jessica:
“In Malaysia we have decided to build a blockchain system, our banks in a number of ways have pooled together resources to defray the experimental costs involved in developing a scalable use for the blockchain application. In our country, Malaysia 9 banks have led the way by coming together to develop blockchain applications for trade finance.”
Banks in Asia have come together to research about the uses of Blockchain technology which included having partnerships which startups like Ripple. They, however, acknowledge that the competition is becoming very high for blockchain. Malaysia, however, seems to have brought together its regulatory plans for both cryptocurrencies and Blockchain. They already introduced their new legislation which set standards for the Country’s exchanges.
Even though much is not known about the Malaysian blockchain plans in the banking sector, it was stated that BNM was working on an Open Application Programme Interface which creates a shared information network. The deputy governor added that they had already set up a dedicated team to work on the matter.
While encouraging the others to move with the technology they gave an example of American company Kodak. The photography giant had gone down for neglecting technology but has since come back by launching a controversial foray into Cryptocurrency mining and blockchain through an ICO in January 2018.
This comes as Malaysian airline AirAsia is considering launching an ICO which would make it one of the most established companies to go the blockchain way. The company CEO stated about the confidence of navigating the current regulatory talk.