The Bank of Korea set out to develop a bond management system using blockchain technology. They are considering how to process the entire process from bond issuance to payment at once on the blockchain platform.
However, the blockchain bond system currently being test-operated by the Bank of Korea is based on the assumption that bonds have already been issued and combined with blockchain distributed ledger technology.
The Bank of Korea announced on the 18th that it has selected a business operator to conduct test operation on blockchain-based bond management and payment system at the end of last year and is conducting a proof of concept (PoC) of the system. This stimulation development project is led by the digital currency research unit at the Bank of Korea.
In November last year, the Bank of Korea announced the ‘PoC service bidding for concurrent settlement of securities payment based on distributed ledger technology’ on the Korea ON-Line E-Procurement System (KONEPS) of Public Procurement Service (PPS). According to the announcement, the pilot project for blockchain-based bond management system will proceed through the first half of this year.
The main point of the blockchain-based bond system, which is being developed by the Bank of Korea, is to simultaneously handle the process from bond issuance to payment with blockchain technology. In the existing bond system, it was necessary to go through the Korea Securities Depository (KSD) for payment, but on the blockchain-based bond system, bond issuance and payment can be integrated.
In order to implement this, the Bank of Korea is considering the operation of several business operators related to bond payments with their own nodes on the blockchain.
In addition, the Bank of Korea expected that the system recovery would be easier through the decentralized node operation rather than the existing centralized system. An official of the Bank of Korea said, “When there is a problem with a system, it can be recovered through other nodes, so the blockchain-based system is much more resilient than other systems.”
The Bank of Korea is considering the way to operate the system by connecting multiple blockchain platforms. This is inefficient than operating a single blockchain platform, but the Bank of Korea explained that it is trying various formats.
The Bank of Korea said, “In order to introduce the blockchain technology into the bond payment system, there are many legal issues need to be reviewed, so we do not provide the service right away.” “We are focusing on the technical aspects to evaluate the normal operation of the system,” the Bank of Korea added.
Kim So-ra(2020.02.18) 한국은행, ‘블록체인 채권’ 시범시스템 개발 중
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