In a significant stride towards a digital future, the Bank of Korea (BOK) has released its 2022 Payment and Settlement Systems Report, showcasing remarkable success in overseeing the systems.Â
With preparations underway for the imminent arrival of central bank digital currency (CBDC), the BOK has also initiated broad discussions on stablecoin regulations.
The BOK-Wire+ fast payment system is set to undergo a transformative upgrade to real-time gross settlement (RTGS) while adopting the ISO 20022 standard by 2028, a move that promises increased efficiency and streamlined operations.
The bank’s commitment to enhancing its capabilities to counter IT operational risks is also commendable, as is the intensified oversight of payment services offered by Big Tech companies.
A milestone achievement was connecting 14 banks and the Korea Financial Telecommunications and Clearings Institute to the simulated CBDC system, which demonstrated promising functionality, successfully handling 2,000 transactions per second.
The BOK’s focus on privacy and security was evident as it experimented with a zero-knowledge proof protocol to enhance CBDC transaction confidentiality.
The report also highlighted progress toward crypto asset regulation with the introduction of the Framework Act on Digital Assets Act. However, the regulatory framework remains incomplete, preventing cryptocurrency payments from becoming a reality in the country.
Also Read: Samsung Collaborates with South Korean Central Bank for CBDC Research
The BOK continues to engage in discussions surrounding stablecoin regulations, emphasizing its commitment to comprehensive and forward-thinking financial oversight.
