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Bank of Korea will now use Blockchain-based Authentication Service Bank Sign

The central bank of Korea, Bank of Korea (BOK), and Korea Financial Settlement Service signs a memorandum of understanding (MOU). According to MOU terms, Bank Sign’s management will transfer to the Bank of Korea.

To offer blockchain solutions for banks, Samsung SDS, and the Korean Federation of Banks launched blockchain-based authentication service known as Bank Sign.

Bank Sign is a Replacement to DID system

At the time of Bank Sign’s launch, the “Digital ID” (DID) was employed by the banks in Korea. The ‘digital authentication certificate’, however, failed to provide proper services to clients due to many flaws in it.

According to The News Asia’s report:

“The decision to acquire Bank Sign was likely precipitated by two factors. First, the abolition of the dreaded ‘digital authentication certificate’ was passed recently which necessitates a replacement. Although the digital authentication certificate was a highly flawed system, it was integrated into many government and banking services.”

Per the partnership between the Korea Financial Settlement Service and the Bank of Korea, both will work together mutually in consultation. At the end of 2020, the position of the digital authentication certification service will replace by Sign Bank.

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An official at the bank said,” [I expect that through cooperation, we will be able to realize cost reduction, service improvements, and discovery of new businesses.”

The old authentication service ‘digital authentication certificate’ has been used in many government departments such as government services, banking, financial transactions, cell phone plans, and many other things.

Need for Better Alternative

The private sector wants to replace the old DID system with new better alternatives. In the list, many prominent telecoms companies are involved such as SK Telecom, Samsung, KT, LG U+, Raon Secure, and Kakao.

The Coronavirus has also catalyzed the competition among blockchain giants to offer competent digital solutions.

“the contemporary Coronavirus era has rapidly necessitated a means of conduction financial business without a face-to-face meeting. This includes everything from highly important business to mundane tasks,” the report reads.

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Hassan Mehmood (Saudi Arabia)

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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