Fintech News | Fintech Zoom

South Korea’s Central Financial institution Is Constructing a New Blockchain System for the Bond Market

The Financial institution of Korea (BOK) is creating a brand new blockchain system for the Korean bond market, one of many largest such markets in Asia.

Korean monetary information website Yonhap Infomax confirmed Tuesday the Korean central financial institution was on the lookout for an organization that may construct a brand new blockchain system that might enhance record-keeping for the market.

Bond transactions may very well be recorded on the blockchain and will even type the idea for a “real-time simultaneous cost buying and selling system,” an area official advised Yonhap. The system can be designed to be shared between related monetary establishments, in addition to the BOK and the Truthful Commerce Fee (FTC), Korea’s monetary watchdog.

The BOK is unlikely to launch a blockchain bond system till it has higher regulatory readability on whether or not it might be in the end liable for any failure or accidents, the report reads.

The Korean bond market is without doubt one of the largest markets in Asia, in keeping with monetary knowledge website Cbonds. The federal government commonly points debt, which may be bought by international traders. The nation has quickly turn out to be a regional chief with the arrival of accountable bonds, comparable to inexperienced bonds, which noticed issuances rise to greater than $6 billion by June 2019, $2 billion forward of China.

It is unsure whether or not the BOK’s proposed blockchain initiative would solely be built-in with government-issued debt, or whether or not it may very well be expanded to incorporate company debt as properly. Equally, it’s unclear if the blockchain bond platform may very well be made to help a central financial institution digital foreign money (CBDC).

The BOK established a job drive devoted to researching CBDCs on the finish of final 12 months.

Disclosure Learn Extra

The chief in blockchain information, Fintech Zoom is a media outlet that strives for the very best journalistic requirements and abides by a strict set of editorial insurance policies. Fintech Zoom is an unbiased working subsidiary of Digital Forex Group, which invests in cryptocurrencies and blockchain startups.

Source link

Yuuma Nakamura


Add comment