Specifically, the movement – primarily proposed as an attempt to utilize blockchain for enhanced efficiency and transparency in interbanking processes – is initiated right after the successful blockchain-based bond transactions carried out by the World Bank.
Therefore, the Bank of Korea has reportedly been on the lookout for a suitable blockchain services partner, to collaborate on the joint project of coming up with a blockchain bond system, which would provide facilitation for distributing bond records among all participants.
This blockchain bond project would have different nodes, with the Korea Fair Trade Commission – the governmental agency in charge of regulation in the country – along with the Bank of Korea and other financial institutions, handle the operation tasks.
A governmental member has also reportedly revealed that the financial authorities in South Korea have been running testing phases for a viable blockchain-based tool that will help with the issuance of state bonds, and keeping track of 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.”