South Korean central bank (BOK) has launched its 2022 Payment and Settlement Systems Report. The report stated that inspection around the systems was executed, along with discussions taking place on a central bank digital currency (CBDC) future and stablecoin guidelines, as stated by Cointelegraph.
According to Cointelegraph, the BOK-Wire+ fast payment mechanism will progress to real-time gross settlement (RTGS) and has taken into account ISO 20022 standard, which should get executed in 2028. From what it’s understood, the bank will enhance surveillance of “Big Tech” payment facilities and develop its abilities to respond to “IT operational risk.”
Based on Cointelegraph’s data, BOK went ahead to ensure a probable CBDC introduction, which consisted of investigating smart contracts’ usage, offline payments with near-field communications and cross-border transactions. Reportedly, the bank established connections between 14 banks, Korea Financial Telecommunications and Clearings Institute (KFTCI) and its simulated CBDC system. As per sources, the bank attempted to use a zero-knowledge proof protocol to clear CBDC transactions for privacy betterment.
“A key focus of the BOK’s research will be identifying a CBDC operating model with minimally adverse impacts on the stability of the financial system and on the effectiveness of monetary policy,” BOK mentioned.
Moreover, Cointelegraph noted that the report highlighted “concrete” progress for the country’s crypto asset regulations through Framework Act on Digital Assets Act. However, the regulatory framework is considered inadequate for it to permit cryptocurrency-based payments.
(With insights from Cointelegraph)