Fast payment system BOK-Wire+ will be upgraded to real-time gross processing (RTGS) by 2028 and takes over the ISO 20022 standard: Payment and Settlement Systems Report 2022

Fast payment system BOK-Wire+ will be upgraded to real-time gross processing (RTGS) by 2028 and takes over the ISO 20022 standard: Payment and Settlement Systems Report 2022

The Bank of Korea (BOK) plans to update your BOK-Wire+ quick payment system on real-time gross processing (RTGS) and the takeover of the ISO 20022 standard by 2028. In addition, the bank will strengthen its supervision of payments from big-tech companies to improve services and improve its ability to manage IT operating risks.

Another reason for the measure is preparation for the potential introduction of a centralized digital currency (CBDC) by the BOK. In this context, the bank examined intelligent contracts, offline payments with near-field communication and cross-border transactions. In order to test its simulated CBDC system, the BOK 14 banks and the Korea Financial Telecommunications and Clearings Institute (KFTCI) have connected for verification. The system was able to handle 2,000 transactions per second. However, it was found that further improvements are required to overcome capacity restrictions.

Another BOK experiment was the research of a knowledge-free protocol for CBDC transactions to improve data protection. However, it turned out that this slowly slowed down the processing speed and that further examinations are necessary to evaluate the security effects of ZKCCBDC.

In the future, BOK will intensify its CBDC research and will focus on CBDC-based tokenized insoles. In addition, she plans to expand research in cooperation with other banks and the Kftci.

The report recognizes the progress in regulating crypto assets through the introduction of the framework law for digital assets, but indicates that the regulatory framework is not yet complete to enable cryptocurrency payments. The BOK also actively participates in discussions about Stablecoins to gain further knowledge in this area.

The planned improvements to the payment system and the increased research of the BOK in the CBDC area suggest that the bank strives to keep up with the latest developments in payment and create the basics for future innovations in the financial sector.