Japanese messaging application LINE is looking to debut a CBDC development platform to ease the preparation processes for central bank-issued digital currencies. The development stage of a central CBDC is a critical point that ensures the feasibility of such currencies. Through this platform, LINE aims to streamline the processes, especially for Asian countries.
LINE Plans to Streamline CBDC Development
South Korean sources inform about this initiative while citing people familiar with the story. As reported, the messaging platform currently markets its CBDC platform to Asian countries. This platform makes use of distributed ledger technology. So far, LINE initiated talks with multiple Asian countries mulling their own national digital currency. However, no details are disclosed regarding the exact number of countries exploring this option.
Many notable Asian countries, such as South Korea, Japan, and others. recently journeyed on their quest for a central bank-issued digital currency. The Bank of Japan announced plans to establish a CBDC proof-of-concept by next year. However, the bank states it doesn’t see any strong case for such a national digital currency as of yet. Meanwhile, South Korean central banks plan to debut their domestic CBDC distribution next year by launching a pilot scheme.
Central Banks Racing for CBDC
One other encouraging development in the crypto industry is how central banks are increasingly considering issuing a CBDC. In recent times, several banks dismissed the use of private cryptocurrencies like Bitcoin, Ether, Bitcoin Cash, etc. However, they now have an interest in central bank digital currencies, which are far more transparent. This is probably because these digital currencies are within their control. Hence, they can easily restrict, monitor, and control the circulation of such digital money.
While some central banks are still observing the CBDC trend, many banks have deployed plans of action. A good example is the People’s Bank of China, which is already leading the race for the world’s first bank-issued digital currency. As Blocdesk recently reported, the province of Shenzhen debuted a giveaway program for the digital Yuan.
Authorities plan to give away about 10 million Renminbi (RMB) to 50,000 lucky participants via the digital Yuan. The giveaway came as part of the ongoing pilot program for the country’s digital currency. It will serve as a test to determine the viability of a CBDC in China.