Called Bank Sign, the new authentication certificate system will allow the Korean nation to advance the development and commercialization of blockchain technology within the banking sector.
For some time, the Central Bank of South Korea (BOK) has been developing research based on the implementation of technology blockchain and in the creation of its own digital currency (CBDC). Now, through a memorandum of understanding (MOU), the Central Bank of South Korea confirmed the implementation of the system Bank Sign based on blockchain, with which the transfer of the country's current financial system to a digital and much more robust environment becomes official.
The Bank Sign system is supported by Samsung and Korean Federation of Banks, and will allow the issuance of authentication certificates for the digital identification of clients. Likewise, Bank Sign makes it possible to transfer customer authentication data between banking organizations and financial entities that require it, all through blockchain technology, guaranteeing a fair, reliable, secure and transparent process.
The implementation of this certificate system is one of the BOK's most important steps to move towards the digitalization of banking processes as well as the commercialization of blockchain technology within the industry.
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Bank Sign, a major implementation backed by technology giant Samsung
The Bank Sign system was first launched in 2018 by the Korean Federation of Banks (KFB), which represents a total of 60 Korean and foreign banks, and South Korean technology giant Samsung SDS, who implemented blockchain technology as a mechanism to promote the development of the country's current financial system. According to the company, it is a joint verification system based on blockchain that replaces the need for the public authenticated certificate (DID) that the country implemented until May of this year, and which was necessary to process mobile and online financial services in the Korean territory.
Due to the way the DID certificate works, it was discontinued in May at the request of the Korean parliament. Now, to cover this need and at the same time compete with new systems designed by private organizations, the nation made the decision to implement the Bank Sign system developed by Samsung as a way to guarantee the continuity of person-to-person digital transactions and operations. .
For his part, a representative of the BOK pointed out that with the implementation of the system, it is expected that the services provided by the entity will be carried out in a much simpler and more reliable way for users. The BOK hopes to be able to carry out much faster and cheaper operations, improve its services, attract new business proposals, and better use the institution's human and material resources, among others.
South Korean Central Bank's interest in blockchain technology
The Central Bank of South Korea has a strategic development plan that projects the evolution of the Korean financial system over a 10-year period through the creation of a CBDC and the implementation of blockchain technology.
To date, there are already several implementations of this technology, both by private organizations and by the state itself. Likewise, in reference to the creation of its own digital currency, the BOK has a set of technological, financial and legal advisors in charge of providing advice and guidance regarding the creation of a digital currency for the nation.
South Korea hopes that soon the state will be able to know the needs for reform and regulations to the current regulations that will allow the nation to adjust to the issuance of a new currency. Likewise, the changes implemented by the BOK seek to make the Korean nation much more flexible and in line with the new technological era and to be able to keep up with the constant advances of today's world.
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