Timeline of blockchain adoption in Pakistan:
Blockchain technology is a novel idea in Pakistan; therefore, its adoption is slow. Following is the timeline of blockchain in Pakistan:
2014: The State Bank of Pakistan did not allow cryptocurrency-based financial transactions, which opens the path to money laundering.
2017: The Pakistan Stock Exchange made available the opportunity of trading in blockchain for bringing transparency.
2018: SBP warned the all-banking sector to avoid transactions in cryptocurrencies.
2019: Pakistan’s government created a task force to govern the technological system.
2020: Punjab, with blockchain-based organizations, proposed a land registry system to improve transparency in the real estate industry.
2021: The Securities and Exchange Commission of Pakistan offered new regulations for digital assets, including cryptocurrencies.
Overall, It is in its infancy stage in Pakistan. There are many applications of this technology in many sectors, like manufacturing, services, and agriculture. However, there are the following general challenges to its adoption: regulatory uncertainty, a lack of technical expertise, and limited access to funding.
Timeline of Blockchain Adoption in the Pakistan Insurance Industry:
In the service sector, like insurance, this technology has a crucial role in bringing transparency to the many operational functions of business models. The main developments regarding this technology in the Pakistan insurance industry are discussed here briefly:
2018: The Insurance Association of Pakistan proposed a project regarding this technology to bring efficiency to many departments of the insurance sector, like underwriting, claims processing, and fraud prevention.
2020: Insurance industry did partnerships with InsurTech startups to offer smart contracts and digitalized claims processing.
2021: SECP legalized the digital insurance after proposing regulations to encourage blockchain-based insurance products and services.
Overall, there are many benefits to blockchain-based insurance, like quick claim processing, minimized fraud, and an improved customer experience. However, the following challenges are hindering its adoption: regulatory compliance, interoperability, and standardization. Technology comes to Pakistan when it becomes mature at the world level. In the insurance sector, technology will emerge in Pakistan.
One Response