Lately, developers are rushing to build platforms that can be used for the issuance of Central Bank Digital Currencies (CBDCs). Line, a Tokyo-based company (also a subsidiary of South Korean internet search engine Naver), is developing one such platform, according to the Korean Chosun Ilbo news agency in a report.
The competition is heating up amongst central banks. Line is also reported to be in talks with several major Asian central banks, which remain undisclosed, due to the sensitive nature of the endeavor. But analysts believe that Japan, South Korea, the Philippines, Vietnam, etc. are some of the candidates.
It’s a major development, owing to the fact that China is reported to be in the advanced stages of launching its CBDC. Line has been involved in the blockchain industry for quite a while. The company launched a DApp blockchain development earlier this year and introduced the Bitmax wallet. It also has its own cryptocurrency called Link (LN).
LINE Can Enable Customized CBDCs
CBDCs are unique in the sense that different central banks can have different requirements. They all, however, have a few things in common, which is mainly the need for a secure and scalable chain.
Furthermore, the logging, monitoring, and control of transactions are important requirements for such a system. Plus secrecy is a vital factor, due to political and strategic implications.
An industry official also stated that:
Line Messenger and Pay have established themselves as national services in Japan and Southeast Asian countries. It seems to be a great opportunity to approach.
LINE appears to have a distributed ledger technology solution ready, sparing financial institutions the hassle of having to develop their novel solutions. LINE’s blockchain platform can provide stability, speed, scalability, personal information protection, and resilience. It also solves a key problem for the industry – the infrastructure to support micro-payments.
Why LINE Has The Correct Credentials For The Job
The company has previous experience in retail services such as messenger and pay business, as well as developing and managing blockchains. LINE has been pursuing blockchain infrastructure projects for a long time. In addition, it has a major lead in regulatory compliance and has working relationships with authorities.
In a world’s first, a large non-financial company is providing such services and platforms to central banks. It appears to be ready to assist central banks with all stages of CBDC research, development, and deployment. As the global CBDC arm’s race is heating up, it will be interesting to see LINE’s role in its future.