Korean Communications Giant LINE Just Rolled Out Blockchain Platform For CBDCs

Ever since central banks around the world started taking cryptocurrency seriously, a major race has started to launch their own CBDCs. Many are already nearing the end of the CBDC development, while some are already in the middle of testing. Of course, there are also those who are still researching whether a CBDC is even necessary, or what the pros and cons of launching one would be.

China, naturally, leads the way, as it has been involved in CBDC research and development for years now, and it is expected that its digital yuan will be available for use country-wide by the Winter Olympics of 2022. Meanwhile, LINE, a South Korean communications giant, decided to create a blockchain development platform for CBDC use, and it just announced that the platform is ready a few days ago.

LINE rolls out a blockchain platform for CBDC

LINE published a blog post regarding the platform on July 9th, in which it stated that the platform was launched, and its official name is Line Financial. According to the company, the platform’s goal is to facilitate the optimal use of CBDCs.

LINE also reassured users that the platform offers top-notch security and excellent performance. The communications giant expects that its platform is fully equipped to handle massive transaction volumes while keeping the payment info confidential. Of course, it has all the measures necessary to make sure that all assets will be in compliance with different financial regulations.

LINE Platform

The new platform has a complex structure that comes in multiple layers. It also features a modular design, which allows it to make the process of designing new systems rather easy. It can be done by combining different modules, and the company has already open-sourced the code, so anyone can inspect it. Not only that, but anyone interested can also download the modules, and use them to create their own blockchains.

LINE did not stop there, however. It also revealed that it is in the middle of a discussion regarding the platform with central banks. The company went beyond Korea’s borders and is contacting central banks in different countries in Asia, offering them its solution in accordance with each of the bank’s specific needs.

It already signed an MoU with NuriFlex to create another CBDC platform for Africa and Latin America, indicating that its goal is to become a global leader in offering this kind of solution. Of course, it is a very big and bold step for the company, and its experiments with blockchain technology over the years seem to be paying off. The company also launched its own blockchain subsidiary in 2018, and it even openly admitted what it plans to do even back then, when crypto was still something that most other companies were avoiding, especially as that was in the middle of the bear market.

Regulatory changes in South Korea

One thing left to explore is how Korean regulators react to this step. After all, the country has recently been making multiple steps in a wide regulatory oversight process. The country’s authorities, as well as its regulator, have had great concerns regarding the use of crypto for money laundering or taking advantage of gullible investors, who were very vulnerable in this unregulated space.

So, the FSC (Financial Services Commission) took action and made a number of steps to ensure that money laundering and investor exploitation will be prevented. One of these actions is bringing back crypto exchange guidelines in a new and improved state. Because of this, local exchanges will now once again have to submit applications to receive the necessary licenses and be fully regulated.

At the time of writing, no such licenses were issued to any of the local exchanges. However, it is expected that the first might be fully regulated before the end of this quarter. Once it arrives, it will mark the start of a new era regarding cryptocurrency market regulation in South Korea.

But, when it comes to LINE and its own platform, both the company and the platform seem to be focused on CBDCs, rather than traditional cryptocurrencies. This should likely be something that the regulators will approve fairly quickly, as most governments are not particularly supportive of traditional cryptocurrencies, but would rather launch their own, centralized digital coins, with El Salvador being the obvious exception.

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