South Korea’s Central Bank Is Building A New Blockchain System For The Bond Market.
The Bank of Korea (BOK) is looking at developing a new blockchain system for the Korean bond market.
Bond transactions could be recorded on the blockchain and could even form the basis for a “real-time simultaneous payment trading system,” a local official told Yonhap. The system would be designed to be shared between relevant financial institutions, as well as the BOK and the Fair Trade Commission (FTC), Korea’s financial watchdog.
As per the report, The BOK is unlikely to launch a blockchain bond system until it has greater regulatory clarity on whether it would be ultimately responsible for any failure.
The country has rapidly become a regional leader with the advent of responsible bonds, such as green bonds, which saw issuances rise to more than $6 billion by June 2019.
It’s uncertain whether the BOK’s proposed blockchain initiative would only be integrated with government-issued debt as well.Similarly, it is unclear blockchain bond platform could be made to support a central bank digital currency (CBDC).
The BOK established a task force dedicated to researching CBDCs at the end of last year.
