Several private banks in South Korea are studying the potential of tokenized deposit technology, an alternative to both private stablecoins and central bank digital currencies (CBDCs).
According to a report from Maeli Business News Korea, Hana Bank and Woori Bank — both private enterprises with headquarters in Seoul — showed interest in so-called “certificate of deposit” tokens (CDs). CDs are tokenized bank deposits put on the blockchain, replacing customary notes and deposits without disrupting the existing banking system. CDs also require identity verification of the same standards as any traditional bank service.
Hana Bank plans to research CD tokens, while Woori Bank’s research department has recently released a report on the tokens.
From the bankers’ perspective, it seems CDs have few disadvantages. As the report specifies, the interest in them stems from the anxiety that the stablecoin failures of 2022 raised among the financial regulators. According to anonymous senior bankers cited in the report:
“CD tokens are perceived as stable from the banks’ perspective since they do not differ significantly from the current system.”
Another important feature is CDs’ potential compatibility with CBDCs. Both of the banks mentioned above are participating in the proof-of-concept test for a CBDC by the Bank of Korea.
In July, the Bank of Korea revealed its ongoing preparation for the potential introduction of a CBDC, which included investigating the use of smart contracts, offline payments with near-field communications and cross-border payments.
The pilot program with 14 private banks is already functioning. However, there are still some technical issues; the system, which has been managing to handle 2,000 transactions per second — higher than most domestic payment systems can facilitate — slowed down as it reached capacity. The Bank of Korea is now looking into ways to improve the technical capacities of the project.
Polls are to open for the local elections across the country, with the added extra of a by-election on the same day.
Over 2,600 council seats are up for grabs across 107 councils in England, along with 10 mayoralties in major cities and combined authorities, and 25 London Assembly seats.
A total of 37 police and crime commissioners will also be decided at ballot boxes in England and Wales.
And a new MP will be chosen for the seat of Blackpool South in a by-election.
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U.S. prosecutors are reportedly investigating the fintech firm after a whistleblower claimed it processed thousands of transactions for users from sanctioned countries and terrorist groups.
John Swinney is expected to declare his bid to become the new leader of the SNP later today, Sky News understands.
It comes after Humza Yousaf announced he was standing down as SNP leader and Scotland’s first minister following his decision last week to cut power-sharing ties with the Scottish Greens – a move which saw his leadership collapse.
Mr Swinney previously served as SNP leader between 2000 and 2004; later becoming Nicola Sturgeon’s number two from 2014 to 2023.
He is considered a front-runner for the top job once again, having garnered support from senior figures within his party, including from the SNP’s Westminster leader, Stephen Flynn.
The Perthshire North MSP is expected to make a statement in Edinburgh on Thursday morning.
However, he could face competition from the party’s former finance minister Kate Forbes, who narrowly lost out to Mr Yousaf in last year’s leadership election.
Though the Skye, Lochaber, and Badenoch MSP has not confirmed her intention to enter the leadership contest, she has so far refused to rule herself out of the race.
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“I am still considering all the options, but I also know that there is a lot of support for me across the country and across the party, and last year proved that,” she told Sky News on Tuesday.
It comes after the outgoing first minister, Mr Yousaf, was forced to resign following the breakdown of the Bute House Agreement.
Within hours of the power-sharing deal coming to an end, Mr Yousaf faced the threat of a no confidence vote in himself, and later from one in the Scottish government.
Mr Yousaf stepped down as Scotland’s first minister just after midday on Monday, saying he was “not willing to treat my values and principles or do deals with whomever simply for retaining power”.
He said he would remain in post until a replacement first minister was chosen.