In partnership with telecoms giant KT Corp, South Korea’s second-largest bank Shinhan is working to develop a blockchain platform for payment and account management.
As reported by the Korea Times, the platform will further utilize similar efforts made by regional governments to develop a system of digital vouchers in the country that can be used like cash. KT Corp has recently become the world’s first mobile carrier to launch a blockchain capable of 2,500 transactions per second, with plans to extend that limit to 100,000 by the end of the year.
Shinhan bank will be responsible for developing the financial side of the project with experience that it has garnered through the management of $302 billion in client assets. Head of Digital Strategy, Jang Hyeon-ki, sees the partnership as a ‘convergence between finance and ICT’ (information and communication technology).
Shinhan Bank is one of the only banks in South Korea to support cryptocurrency exchanges and is further investigating the development of a blockchain system for wire transfers and forex transactions.
Last month, the South Korean government announced its progress in finalizing cryptocurrency legislation in the country. It will soon release a new cryptocurrency and blockchain bill that will define regulations of digital assets under the jurisdiction of the Financial Services Commission (FSC).
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