Largest Credit Bureau In Eastern Europe To Use Blockchain For Customer Data Storage
The Polish Credit Office, the largest credit bureau in Central and Eastern Europe, will implement a blockchain solution for storing and accessing sensitive customer data.
The Polish Credit Office, Biuro Informacji Kredytowej (BIK), has partnered with UK fintech firm Billon to implement blockchain for customer data storage, according a press release from Billon today, May 14.
BIK, the largest credit bureau in Central and Eastern Europe, is owned by Poland’s leading banks and tracks around 140 mln credit histories, according to the press release. BIK president Mariusz Cholewa has stated that the credit bureau’s cooperation with Billon is “long-term,” and that BIK “believe[s] that blockchain technology will transform how the financial sector communicates sensitive data with clients.”
Cholewa emphasized that the two entities have developed a solution that “meets the legal requirements of a durable medium of information, as well as the requirements of the EU General Data Protection Regulation [GDPR], which comes into force this month.” The system indeed seems to be shaped by the context of GDPR, taking into account the stipulated right to erase personal data.
BIK and Billon have been piloting Billon’s blockchain architecture with eight Polish banks since late 2017, and have reportedly established that the system is capable of publishing over 150 mln documents per month.
As per the press release, Billon terms itself a so-called “civilized blockchain” company, meaning that it implements blockchain to ultimately process fiat currencies. Forgoing cryptocurrencies, it uses ‘E-money’ instead, which is legal tender under the European Commission's E-Money Directive from 2009. Andrzej Horoszczak, CEO of Billon, said that the data system:
“is the start of a true revolution in information management. It is now possible to move away from the constraints of closed central databases to a democratic blockchain-based Internet where every user will be able to control their identity […] we anticipate [mass blockchain technology] will soon be adopted by industries such as telecommunications, insurance and utilities [...] for trusted document management.”
Last month, the Dutch Ministry of Economic Affairs and Climate Policy commissioned a national blockchain research agenda that similarly highlighted the technology’s potential for data management with provisions for privacy, including the “right to be forgotten,” as well as self-sovereign identity management. In an extra-EU context, and with an emphasis on security and automation, China’s official government auditor is now considering a blockchain solution to streamline its colossal data infrastructure.