A number of South Korean commercial banks have decided to seek blockchain solution in their banking consensus given the increase in demand and changing trends of the banking sector. This year could prove to be the year of massive investments in Fintech industry in the country.
Terra a public blockchain provider has partnered with IBK bank to help them with payment solutions. Terra was founded by one of the biggest South Korean e-commerce platforms TMON. The firm also struck deal with Kakako Group’s Ground X blockchain last year.
Shin Hyun, the CEO of Terra says that the blockchain implementation would encourage other service providers to look towards Distributed Ledger Technology to develop payment systems that consumers can actually experience. Shin also believe that the advent of Blockchain would lead to the creation of a wide range of financial products and services. IBK bank has processed more money from South Korean Crypto exchange platforms than any other banks in the country.
Apart from IBK bank, another commercial bank Woori Bank has got a green light to initiate a blockchain driven system which would allow its customers to exchange foreign and domestic currency or make cash withdrawals up to $850 US dollars at airport drive-through restaurants, fast food outlets, stores and parking lots. The initiative will be available for public use starting from this October.
Woori Bank’s blockchain initiative is a part of the regulatory sandbox programme operated by the Financial Services Commission (FSC), one of the top regulators in South Korea.
Financial Services Commission (FSC) Give Approval For Various Blockchain-Centered Projects
FSC has also approved for a blockchain powered real-estate platform, which would be developed by two commercial banks namely KEB Hana and KB. The blockchain powered real estate platform won’t be the first DLT based project for the KB as it has already partnered with LG to create a range of blockchain projects including the LG coin, which is being developed and tested in secrecy before it becomes public.
On the other hand, KEB Hana has applied for around 46 blockchain patents and has partnered with well-known blockchain firms like R3 CEV, Hyperledger and Enterprise Ethereum Alliance blockchain consortiums.