Central Bank of Korea: Advances in blockchain are driving banks to cryptocurrencies

Central Bank of Korea: Advances in blockchain are driving banks to cryptocurrencies

By ... | World of Crypto | 22 May 2020

According to a recent report by the Central Bank of South Korea, advances in payment accounts and "decentralized general office technology" have prompted central banks to pay more attention to cryptocurrencies. The bank has also conducted new research and analysis on the progress of the Central Bank's "digital currencies" (CBDC) around the world.
The bank released a report on "CBDC Progress Abroad," in which it analyzed 14 central banks' digital currency projects (Digital Currency) on May 18.

New technology is a catalyst for CBDC projects
The bank found that recent advances in payment accounts, "Decentralized Ledger Technology" and a sharp decline in the use of cash were the main factors driving central banks to research and develop CBDCs. Most central banks are currently developing IT systems to assess the feasibility of the CBDC model. Central banks in Sweden, Singapore, Canada, Japan, Thailand and Hong Kong have unveiled the launch of "Distributed General Office Technology" (DLT) in their CBDC research, according to the report. The Bank of Korea explained:

Most central banks are researching whether these emerging technologies can be applied to CBDCs, as banks want to focus on central office management and account-based transactions that currently apply to payment and settlement systems. Get away.

Small and large payments
Norway, the Central Caribbean Central Bank, the Bahamas, Sweden, the United Kingdom and China are investigating CBDCs for micropayments, while Switzerland, Singapore, Canada, Thailand, Hong Kong and France are focusing on large sums of money. According to the report, Sweden and China have already completed the Proof of Concept protocol and have reached the pilot stage, while the CBDC is currently in the experimental phase. The Eastern Caribbean Central Bank, Japan, the European Central Bank, Singapore, Canada, Thailand and Hong Kong are still examining the concept of CBDC.

More programs
The Bank of Korea said it was considering using various platforms in its distributed office, including Hyperledger Fabric and Coda, in its CBDC project. The bank will continue to exchange information with technical companies at home and abroad, and plans to hire foreign technical consultants.

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