The corporation behind popular messaging app LINE is developing a platform that will assist central banks in creating their own digital currencies, South Korean news agency Chosun reported on 19 October.
According to the publication, a LINE representative familiar with the matter claimed that the firm was aiming to support the creation of a “customized CBDC”, which would reflect each country’s requirements while at the same time maintaining the advantages offered by blockchain tech. The firm is also looking to promote its own blockchain, with a representative of the firm stating that LINE was aiming to “provide a blockchain platform that is fit for CBDCs based on Line Blockchain”.
The messaging giant further revealed that it is already holding discussions with “major” Asian countries, who were interested in the application of the blockchain-based CBDC platform. LINE, however, did not disclose which countries those were, or whether they had plans to release their own CBDCs.
For about a year now LINE has actively been exploring the cryptocurrency and blockchain space. Back in September 2019, the firm launched its own cryptocurrency exchange, named BitMax, only two weeks after it received approval from Japanese regulators. This year, the messaging giant launched trading of its proprietary token Link (LN) in Japan, and later released a blockchain development platform for decentralized applications and services.
LINE is not the only firm that wished to assist central banks in creating their own digital currencies. Last month, Mastercard released a virtual CBDC testing platform to help central banks evaluate the effectiveness of their CBDC’s design and proposed use cases. The testing environment was designed to mimic the issuance, distribution and exchange of CBDCs between financial institutions and consumers.