Global central banks are increasingly looking at blockchain engineering as a tool to make interbanking processes more efficient and transparent.

Following the World Banking concern'south exemplary experience of blockchain bond transactions, Republic of korea'due south cardinal bank is working on its own blockchain-based bonds, Cointelegraph Korea reports Feb. 18.

Banking concern of Korea started the project in belatedly 2022

Co-ordinate to a written report by local publication Yonhap Infomax, the Banking concern of Korea has been seeking a blockchain services provider in lodge to build a blockchain bond system that would allow distribution of the bail records among all participants.

The Bank of Korea reportedly launched a Proof of Concept (PoC) project in late 2022 in club to movement bail transaction records that are currently maintained by the Korea Securities Depository to a blockchain-powered base of records accessible by multiple nodes.

South korea'south central bank to evaluate blockchain'south capabilities in speeding up transactions

The blockchain bond projection would involve divide nodes operated by South Korea's regulatory authority, the Korea Off-white Trade Commission, the Banking concern of Korea and other financial institutions, the report notes.

A local official reportedly confirmed that the Due south Korea'due south 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 enquiry regarding the bond marketplace is being conducted with reference to the purported commencement-ever blockchain bail transaction handled by the World Bank and the Commonwealth Banking company of Australia back in 2022.

As reported past Cointelegraph, the Earth Bank raised a total of $74 1000000 for its 2-year blockchain bond as of August 2022. 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 2022 that it will be setting upwards a dedicated group to research cardinal depository financial institution digital currency in 2022.