Bangladesh Blockchain Adoption 2020 Overview
In 2020, blockchain technology in Bangladesh is at an early adoption stage, but pilot projects are actively progressing in finance, trade, and the public sector. Following the 2016 SWIFT hacking incident, Bangladesh Bank (BB) is examining blockchain-based payment systems to enhance security, and blockchain applications are anticipated for supply chain transparency in the garment industry, digitalization of land registration, and reduction of overseas remittance costs.
The blockchain market is projected to grow at 45% annually from $15M in 2020 to reach $90M by 2025. More than 30 DLT startups are growing, centered on Dhaka, and ESG traceability requirements from global garment buyers (H&M, Zara, Walmart) are accelerating blockchain adoption in the RMG supply chain. Korean firms including Korea Corp SDS and Korea CNS are exploring technology transfer and joint venture cooperation opportunities.
Blockchain Adoption in Finance
Since 2018, Bangladesh Bank (BB) has been advancing a blockchain-based shared KYC platform, and commercial banks are introducing blockchain for trade finance (letters of credit). MFS operators such as bKash and Nagad are also examining blockchain-based cross-border remittances, with a target of reducing overseas remittance fees from 7% to 2%.
| Project | Lead Organization | Sector | Status | Expected Benefit | Investment Scale |
|---|---|---|---|---|---|
| KYC Sharing | Bangladesh Bank (BB) | Identity verification | Pilot | 80% reduction in duplicate KYC checks | $2M |
| Trade Finance DLT | HSBC and Standard Chartered | L/C | In operation | Processing time: 5 days → 24 hours | $5M |
| Cross-Border Remittance | bKash and Ripple | Overseas remittance | Under review | Fees: 7% → 2% | $3M |
| Insurance Claims | Green Delta | Insurance | Pilot | 60% claims processing automation | $1M |
| Stock Settlement | DSE | Securities | Under review | T+2 → T+0 settlement | $4M |
Supply Chain and Trade Blockchain
Global garment buyers (H&M, Zara, Walmart) are demanding supply chain transparency, accelerating the adoption of blockchain-based tracking systems. DLT is being applied to cotton origin certification, factory compliance verification, and transport tracking, with blockchain also being introduced to digitalize customs documentation. As ESG certification requirements intensify, blockchain supply chain investment is becoming mandatory.
Public Sector and Land Registration
Bangladesh's land registration system is paper-based and prone to disputes. The government is pursuing blockchain-based digital land registration to reduce ownership disputes and improve transparency in real estate transactions. Blockchain pilots are also underway in digital ID (National ID + blockchain), voting systems, and public procurement transparency.
Korean Blockchain Firm Cooperation Opportunities
| Sector | Demand | Korean Firms | Cooperation Mode | Expected Revenue |
|---|---|---|---|---|
| Financial DLT | KYC, remittance, insurance | Korea SDS, Korea CNS | Technology transfer and JV | $5M |
| Supply Chain Tracking | RMG ESG and certification | 코리아SK C&C, Korea Steel ICT | Platform development | $3M |
| Public Sector | Land, ID, procurement | KISA, NIA | ODA and technical advisory | $2M |
| Education Credentials | Degree and EPS verification | Korea Blockchain Industry Association | KOICA project | $1M |
| Medical Records | Hospitals and insurance | Korea Corp Seoul Hospital, Kakao Healthcare | KOICA medical AI + blockchain | $2M |
| Country | Market Size | Key Sectors | Government Support | Korean Entry Suitability |
|---|---|---|---|---|
| Bangladesh | $15M | Finance, garment, land | Central bank pilots | ★★★★☆ |
| India | $350M | IT, finance, healthcare | National blockchain strategy | ★★★☆☆ (intense competition) |
| Sri Lanka | $8M | Logistics, finance | Early stage | ★★★★☆ |
| Pakistan | $10M | Finance, real estate | Pilot stage | ★★★☆☆ |
| Nepal | $2M | Early stage | Regulatory gap | ★★☆☆☆ |