The Japanese messaging giant, LINE has announced that it is currently having discussions with central banks in Asia, which are related to a potential partnership for developing central bank digital currencies (CBDCs). According to a spokesperson for LINE, the purpose of these discussions is to come up with a blockchain platform that would be ready for introducing these digital currencies, which would be based on the LINE blockchain. Back in August of this year, the Japanese company had already developed and launched its blockchain platform that could be used by developers. However, up till now, it is unclear as to which Asian central banks are in discussion with the Japan-based messaging giant.
Even so, a Korean news outlet by the name of IT Chosun has speculated that it would probably choose to work with central banks that are already focusing on the development of digital currencies, so they can be used for the purpose of micropayment. According to IT Chosun, the spokesperson for LINE had elaborated on the company’s plan in this regard. The spokesperson for the Japanese firm said that LINE is dedicated to supporting the development of customized central bank digital currencies (CBDCs). He added that the company would do so in such a manner that it would reflect the requirements of each central bank within their respective countries.
Meanwhile, the spokesperson added that these central banks would also have the capability of using LINE’s blockchain platform and leverage its scalability and stability. According to the spokesperson, LINE is already working on plans for global expansion and they will make their first big move in Asia. The Bank of Korea is an excellent example in this regard because the bank is planning to conduct a trial of a central bank digital currency (CBDC) for the purpose of enacting micropayments. A recent report was published by the central bank and it took note of countries, such as Uruguay, the Bahamas and even Cambodia, all of which are all developing their respective CBDCs that are dedicated to micropayments.
This comes as an attempt to bring down the overall cost of money management. Other global corporations are also making a move and throwing their hat in the ring. Just a month back, the global payments giant MasterCard had introduced a testing platform called ‘Virtual and Custom’. The purpose of this platform is to allow central banks to evaluate and inspect their own digital currency systems. These moves indicate that cryptocurrencies can no longer be ignored and are becoming more and more mainstream.
It appears the entire world, along with multinational corporations, are competing to achieve supremacy in the digital currency race. While things still remain uncertain, only China and the Bahamas have made some significant progress in regard to central bank digital currencies (CBDC) and are poised to roll them out on a large scale. At this point, China is in the lead and it is expected to retain this lead, considering its trials are going quite well for now. However, Venezuela’s Petro is the first state-owned cryptocurrency.