The central bank of Malaysia has announced that it intends to introduce Blockchain in the country’s banking sector. This was revealed in a speech by the bank’s deputy governor who also revealed that there is ongoing development work to the same effect.

Jessica Chew Cheng Lian, who is the deputy governor of Bank Negara Malaysia(BNM) and who was speaking at the Asian Banker Digital Finance Convention 2018 that took place in Kuala Lumpur, said that nine local banks had come together to build and develop a trade finance Blockchain project.

As several banks in Asia come together to try out on the various uses and applications of Blockchain technology competition is becoming stiff and intense. Malaysia seems to have put in place regulatory plans regarding cryptocurrencies and Blockchain which BNM unveiling a new set of legislations in early this year which have set standards for the country’s cryptocurrencies sector.

Although details about the plans by the banking sector remain scanty, Lian noted that BNM was in the processing of designing Open Application Programme Interfaces (Open APIs), which assist in creating shared information networks.

Lian also revealed that a special group of professionals has been set up to work on the details. The special taskforce will keenly study and oversee the smooth implementation of blockchain technology in the country and ensure that the technology is rolled out in strict compliance with the laid down legal and financial guidelines.

In a statement, Datuk Dr Abu Bakar Mohamad Diah, the Deputy Science, Technology and Innovation Minister said blockchain technology holds a lot of potential across several industries especially the financial sector. A blockchain is defined as continuous list of records referred to as blocks and which are interlinked as well as secured by cryptography. The blockchain system is designed in such a way that it uses nodes agreements to execute transactions which can effectively be used to curb fraud.

Abu Bakar revealed that the ministry is currently in talks with a number of stakeholders in regards to the successful implementation and development of blockchain in the country. He also revealed that at an advanced stage of its development in the country, the ministry will be working on introducing Shariah-compliant specifically woven for blockchain technology.