In the latest example of a central bank turning to blockchain technology, the Bank of Korea is working on a blockchain bond system.
Business Korea reports that the nation’s central bank is conducting a proof of concept (POC) for a blockchain-based pilot bond management and settlement system.
Korea’s current bond system requires settlements to go through the Korea Securities Depository. The Bank of Korea is looking to nix this, hoping to do both bond issuance and settlement on the blockchain.
In order to implement this, the BOK is considering operating several nodes related to bond settlement to configure their own nodes on blockchains. In addition, the BOK believes that a system recovery will become easier with distributed node operation rather than with the current centralized system.
However, the bank did note that there are several legal issues that need to be resolved prior to launching the service, adding that they “are checking whether the system is running nicely by focusing on technological points.”
Photo: Public Domain
