Story & photo by Rizal Raoul Reyes
THE next big disruption in digital technology is going to shake the country’s financial industry. Through the partnership between Filipino company Amihan Global Strategies and Hyperledger, the introduction of blockchain technology is getting a big push after they were asked by the Bankers Association of the Philippines (BAP) to establish an industry-wide facility anchored on the platform to enhance the country’s digital identity technology.
“We welcome this development for the Philippines. The Bankers Association of the Philippines joins a global movement to benefit consumers using blockchain technology,” Hyperledger Executive Director Brian Behlendorf said in a news briefing on November 17.
He said it is a milestone for Hyperledger as the country’s banking community is using open-source software from Hyperledger technology to strengthen data privacy and finance.
A blockchain is a distributed ledger that allows people around the world to link their computing power to create permanent records of exchange and build systems that have trust, accountability, security and transparency at their core.
Also known as distributed ledgers, it can be used to record promises, trades, transactions or simply items that a user doesn’t want to disappear. Mirrored exactly across all nodes in a given network, it allows everyone in an ecosystem to keep a copy of the common system of record. Furthermore, the records can never be edited or erased.Set featured image
Although the information or data is shared across the ledgers, the system will be anchored on self-sovereign identity. This means the individual will have an exclusive control and prudence of sharing his personal information to selected recipients of his choice. By using blockchain, Behlendorf said clients will have an easier time to process their transactions, as participating banks and accredited agents would be able to upload personal information at once through mobile phones. Once the uploaded information is confirmed and vetted by a participating bank, the client can now open a new bank account and access banking services of other participating banks in a much faster and easier manner.
Although the project is still in a fledgling stage, the best is yet to come for the technology duo as some of the country’s major banks (Asia United Bank, Banco de Oro, Bank of the Philippine Islands, Citibank, East West Bank, Metropolitan Bank and Trust Co. and Union Bank) have already signed and verified customer data on the platform. “Having Citibank as one of the signatories means that Amihan is gaining recognition for this initiative,” Amihan Executive Director and Founder Winston Damarillo pointed out.
The BAP, led by its president Nestor Tan, expressed optimism on the blockchain technology. Tan said it will be drastically change the verification processes in the banking industry. With this, Damarillo said the Philippines is one of the first few countries in the world to employ a powerful and sophisticated technology for identity management. “We are commented to pursuing the Philippine banking road map we have crafted with the support of the Bangko Sentral ng Pilipinas. The initiative will enable the banking industry to provide a more convenient and faster way of delivering services to clients,” Tan said in a news statement.
As of 2017, there are only 44 million out of 100 million Filipinos that deposit their money into bank accounts. Nevertheless, with the economic growth of the country and the propagation of digital technology, more Filipinos are expected to have easier access to financial services.
“Digital is the best solution for financial inclusion in the Philippines,” Damarillo said.
Amihan is also developing a blockchain-based universal ID that customers can use across different banks, businesses and government institutions. “The idea is to develop a self-sovereign identity,” Damarillo said, “where every individual has full access over their data and can share it with organizations and people that they trust.”
“Ultimately, blockchain technology is about building more distributed, more accountable, and more open transaction networks and services. This will benefit companies and even everyday people,” Behlendorf said. “With Amihan’s partnership, we are excited to see new blockchain-based Asean solutions that will revolutionize the region, and the entire digital world.”
The implications go beyond finance. Blockchain technology has the potential to solve problems that run the gamut, from storing health records to tracking ethical consumption, monetizing digital content, tackling voter fraud and more.
“The possibilities are limitless,” Damarillo said. “Our ambition is to move beyond possibilities toward action and real innovations that can spur a new wave of economic opportunity in one of the fastest-growing economic regions of the world.”
Meanwhile, digital-technology colossus PLDT recently disclosed it’s serious in implementing blockchain technology to protect and manage its data in a more efficient manner. Right now, PLDT Executive Vice President and ePLDT Group President and CEO Ernesto R. Alberto said the company is evaluating how to implement blockchain in its operations.
“Digital enablement is far and wide. We will include blockchain as a platform as part of protecting our data assets soon,” he said.
Rene Meily Jr., president of the Philippine Disaster Resilience Foundation, said some start-ups under the Ideaspace Foundation are using blockchain for their operations. “I think they’re now working out with the system,” he said.
Earlier this year, software titan Oracle announced the launching of the Oracle Blockchain Cloud Service. The Redwood City, California-based company said the advanced, enterprise-grade distributed ledger cloud platform helps customers increase business velocity, create new revenue streams and reduce cost and risk by securely extending ERP, supply chain and other enterprise software as a service plus on-premises applications to drive tamper-resistant transactions on a trusted business network.
Part of the Oracle Cloud Platform, it provides an enterprise-grade blockchain platform with industry-leading resiliency, scalability and security. It is fully managed by Oracle and provides customers rapid provisioning and simplified operations with built-in monitoring, continuous backup and point-in-time recovery.
“Blockchain holds the promise to fundamentally transform how business is done, making business-to-business interactions more secure, transparent and efficient,” Amit Zavery, senior vice president of Oracle Cloud Platform, said in a news statement.