Bank of Korea, Payment Conference… Digital financial innovation discussion
Participation of overseas experts such as Bank of England and Nexus Global Payments
Quick Look
- The Bank of Korea held a conference on the 11th with the theme of payment infrastructure innovation in the digital finance era.
- The Bank of England is piloting synchronized payments with the goal of actual use in 2028, and plans to improve the efficiency of cross-border payments, such as the Nexus project, have been discussed.
AI-generated summary
Why It Matters
The Bank of Korea held a conference by inviting overseas central banks and private sector experts to discuss payment infrastructure innovation and policy tasks in the digital finance era.
On the 11th, the Bank of Korea held a payment system conference, inviting foreign central banks and private sector experts under the theme of 'Payment infrastructure innovation and policy challenges in the digital finance era.'
Andrei Pustelnikov, head of the Bank of England (BOE), the central bank of England, who attended on this day, made a presentation regarding the payment innovation he is pursuing.
The Bank of England is piloting a synchronized payment method of the existing central bank payment system with the goal of actual use in 2028 to improve the efficiency of tokenized asset transactions and maintain the stability of the financial system.
Synchronized payment refers to a technology that eliminates payment risk by linking the central bank's payment system and an asset platform, such as an external distributed ledger technology (DLT) ledger, and allowing the transfer of assets and payment to be completed simultaneously and conditionally.
The Bank of England is also testing tokenized securities settlement with 18 institutions, including the London Stock Exchange, and plans to announce guidelines regarding the specific operation and regulation of the tokenized asset settlement system within next year.
The Bank of England announced that it will actively participate in Project Agora, which issues and operates central banks of major countries, including the Bank of Korea, tokenized central bank reserves and commercial bank deposits on a common cross-border payment platform.
Next, under the theme of 'Global cross-border payment election trends and implications,' Andrew McCormack, CEO of Nexus Global Payments, made a presentation regarding the Nexus project being promoted in the ASEAN region with the goal of improving the efficiency of cross-border payment services.
The Nexus Project is a project that aims to secure interoperability between systems in each country and overcome differences in operating times by linking the rapid payment systems operated in each country to a single platform and applying common technical standards and operating rules.
The Central Bank of Brazil announced the success of its ‘Rapid Payment System (Pix)’, which provides real-time remittance and small payment services 24/7.
What to Watch
AI outlook — possibilities, not facts
The Bank of England will announce guidelines on how to operate and regulate the tokenized asset payment system sometime next year.
Likely · Within months
Open Questions
- What is the specific schedule and scope of the synchronous payment pilot operation?
- When will the tokenized asset payment system guidelines be announced?
- Are there any plans for Korea to participate in the Nexus project?
