The Bank of Korea (BOK) is planning to develop a brand new blockchain system for the Korean Bond Market, which is considered to be one of the largest such markets in Asia.
It was confirmed by a Korean financial news site Yonhap Infomax on Tuesday that the Korean bank is in search of an organization that has the ability to build an entirely new blockchain system that will refine the record-keeping of the market.
A local official stated in the press release that the bond transactions can be recorded on the blockchain and can further form a payment trading system simultaneously. The system will be designed accordingly to be shared amongst appropriate monetary foundations as well as the BOK and Fair Trade Commission (FTC).
The report further states that BOK is unlikely to launch a blockchain bond system until the bank has the clarity of whether it would be ultimately responsible for any failure or accidents.
According to the financial data site Cbonds analysis, the Korean bond market is one of the largest markets in Asia. Regular debts are issued by the government, which is further available for foreign investors to purchase. With the rise of responsible bonds, such as green bonds, the country has swiftly become a provincial leader. Green bonds witnessed a rise in distribution and supply to more than $6 billion by the month of June in 2019, which is 2 million dollars more than China.
Bank of Korea is speculated to be inspired by the World Bank. Together with the Commonwealth Bank, the World Bank raised $108 million through two bond sales, which were held on a private version of an Ethereum blockchain.
It is still uncertain that this proposal on blockchain initiative by the Bank of Korea will be integrated with debts-issued by the government, or it would further include corporate debt as well. Also, it is still debatable if the blockchain bond platform can be made to support the Central Bank Digital Currency (CBDC).