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Central Banks of Korea and Nigeria initiate seperate Blockchain studies

The Bank of Korea has published, as part of an overview of the central bank’s future plans, a report titled “Present Status and Key Issues of Distributed Ledger Technology” detailing policy issues which could hinder the growth of distributed ledgers and also estimates the cost-cutting effect of the application of the blockchain technology for the first time in Korea.

A bitcoin in a digital surroundingThe report mentions that blockchain implementation could save the bank about KRW 107.7 billion. Furthermore, the report recommends implementing the technology for major settlement services such as the BoK wire+ (Bank of Korea settlement system).

Addressing privacy issues, according to the report,  would require PKI based Key Exchange, Supernode (Central Manager) – who will have access to transaction information along with the trading partner, and Confidential Transactions which will be applicable to distributed systems and maintain anonymity and make deals with parties to access deal information.

In addition, the report also recommended the supernode to be responsible for token issuance and granting participants (or token users) access to the shared ledger. It also calls for a Merkle root-based implementation of a public blockchain capable of conducting 3,000 transactions per second.

With the increasing spread of Bitcoin, Nigeria Electronic Fraud Forum (NeFF) has said it is taking up measures to ensure that the crypto currency will not be a dark hole in which the Nigerian financial system will fall into.

Presently, the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have instituted a joint committee to look into the effects of the crypto currency and other blockchain technology and its effect on the Nigerian economy.

Chairman of NeFF and Director, Banking and Payment System at the CBN,  Dipo Fatukun noted the need for regulators and operators in the Nigerian financial system to be well informed and not left out in the blockchain technology.

The managing director and chief executive officer, NDIC, Ibrahim Umaru had earlier informed of a joint committee comprising of the corporation and the CBN which is currently  looking into the emergence of the unconventional financial products.

The NDIC chief said the emergence of blockchain platform such as Bitcoin is set to radically transform the banking industry noting that some banks in Europe have already adopted and introduced their own block hair products, compelling regulatory authorities to wake up to the changing trend.

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