Worldwide national banks are progressively taking a gander at blockchain innovation as an apparatus to make interbanking forms increasingly productive and straightforward.
Following the World Bank’s model understanding of blockchain bond exchanges, South Korea’s national bank is chipping away at its own blockchain-based bonds, Cointelegraph Korea reports Feb. 18.
Bank of Korea began the task in late 2019
As indicated by a report by nearby production Yonhap Infomax, the Bank of Korea has been looking for a blockchain administrations supplier so as to construct a blockchain bond framework that would permit circulation of the bond records among all members.
The Bank of Korea purportedly propelled a Proof of Concept (PoC) venture in late 2019 so as to move bond exchange records that are as of now kept up by the Korea Securities Depository to a blockchain-controlled base of records available by numerous hubs.
South Korea’s central bank to evaluate blockchain’s capabilities in speeding up transactions
The blockchain bond project would involve separate nodes operated by South Korea’s regulatory authority, the Korea Fair Trade Commission, the Bank of Korea and other financial institutions, the report notes.
A local official reportedly confirmed that the South Korea’s financial authorities have been testing the potential of blockchain in terms of issuing state bonds to record transactions:
“We are using government bonds to record securities and cash transactions in a distributed ledger and test whether a real-time simultaneous payment trading system is possible.”
According to Yonhap Infomax, the Bank of Korea’s blockchain research regarding the bond market is being conducted with reference to the purported first-ever blockchain bond transaction handled by the World Bank and the Commonwealth Bank of Australia back in 2018.
As reported by Cointelegraph, the World Bank raised a total of $74 million for its two-year blockchain bond as of August 2019. According to the bank, the bond is the first to be created, allocated, transferred and managed throughout its life cycle using distributed ledger technology.
Regarding the Bank of Korea, South Korea’s central bank announced in late 2019 that it will be setting up a dedicated group to research central bank digital currency in 2020.