LINE, a Japanese messaging giant is building a platform for developing central bank digital currencies (CBDC), as per the report by South Korean news agency the Chosun Ilbo.
CBDC is the cryptocurrency issued directly by central banks to replace real fiat currency. It is generally different from cryptocurrencies such as Bitcoin. The private sector issues these cryptocurrencies and has increased market price volatility.
However, LINE is in discussions with Asian central banks about possibly working on digital currency projects. Executives of the line stated that they could not deliver the exact countries that considered the platform’s application.
The Bank of Korea, for instance, could trial its CBDC for micropayments. A recent report from the central bank mentioned that other countries like Uruguay, Cambodia, and the Bahamas are also developing CBDCs for micropayments to decrease money management costs.
Line officials said,
It is difficult to disclose the exact country where the discussion is taking place…It is a major Asian country focusing on the development of CBDC for micropayment.
Payments giant Mastercard launched a virtual and custom testing platform last month which will allow central banks to evaluate digital currency systems. On October 7, the South Korean central bank reported that it will start the distribution phase of its CBDC pilot scheme next year.