The Bank Of Korea Partners With R3 Consortium For Blockchain Technology POC Project

The Bank of Korea has announced they will carry out a Proof-of-Concept (PoC) with the R3 consortium that utilizes blockchain technology.

Kim Jung-hyuk, head of the e-finance planning team at the Bank of Korea's Financial Supervisory Service, said:

"As a central bank, we were looking at different ways to utilize the blockchain technology. We recently decided to proceed with the proof-of-concept with R3 Consortium and once the final decision is made internally, the specific scope and schedule of the project will be announced."

Over the past few years, South Korea’s financial sector has aimed to be highly progressive. In 2016, the Bank of Korea released a report entitled “Present Status and Key Issues of Distributed Ledger Technology,” which will serve as a reference for long-term research and strategic guidance regarding distributed ledger technology.

South Korea is also taking steps to ultimately go cashless and has resolved to remove coins from circulation by 2020. As a result, South Korean citizens have been encouraged to deposit loose change onto “T-Money” cards - electronic passes that can be used to pay for incidentals like public transportation and purchases at over 30,000 South Korean convenience stores.

In the meantime, the Bank of Korea has launched a task force team (TFT) to oversee digital currency distribution. The TFT will also survey the effects and financial stability of digital currencies on South Korean monetary policy. A separate technology research team will supervise the issuance, circulation, and trading regulations of digital currencies.

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