LINE, a high-profile South Korean communications company, has launched the LINE Financial Blockchain to foster central bank digital currency (CBDC) use in Asia.
South Korean communications company LINE has launched a blockchain platform for development called Line Financial, according to an official post made on July 9. The goal of the platform is to eventually facilitate the optimal use of a central bank digital currency (CBDC).
LINE eyes CBDC in South Korea
Saying that the platform provides excellent security and performance, and guaranteeing “the completeness of the payment required to confirm the transactions required by the CBDC business,” LINE expects that the platform can handle large transaction volumes. It will also keep payment information confidential, besides having measures in place to ensure that assets can comply with diverse financial regulations.
The development platform has a layered structure and modular design that makes it easy to design a system by combining different modules. LINE has already open-sourced the code. Those interested can download the modules and build their own blockchain.
The company also announced that it was discussing the platform with central banks in various Asian countries to apply solutions depending on the specific needs of each central bank. It has also signed an MoU with NuriFlex to build a CBDC platform in Latin American and Africa.
If this succeeds, it would be a bold step forward for LINE, which has not shied away from tinkering with blockchain technology. The firm created a blockchain subsidiary in 2018 and eagerly stated its intentions during this time.
What will Korean regulators say?
South Korea is currently in the midst of a wide-scale regulatory oversight process. The country’s regulator, the Financial Services Commission, has taken broad actions to ensure the prevention of money laundering for investor protection.
Regulators recently revamped the crypto exchange guidelines for the country, and exchanges will now have to file for a new license to become fully regulated. The first such exchange is expected this quarter and will mark a new era for crypto market regulation in the country.
However, it appears that LINE is closely focused on CBDC use, which regulators should be happy to hear about. Most governments, El Salvador being an exception, are keen on designing and implementing a CBDC. LINE’s blockchain platform, should it receive the approval and authority of central banks, could receive kinder treatment for its focus on these assets.