The Korean Federation of Banks (KFB) announced that it will soon release a blockchain-based identity system for usage in local commercial banks. It will be called BankSign and will be launched in July, after the end of the test period, which had began in April this year. This is reported by CoinDesk.
Samsung developed a private blockchain, based on the Nexledger technology. According to KFB, thanks to BankSign, local banks will be able to replace the existing identity system, which South Korean banks have been using for several decades.
The KFB Federation was founded in 1984 and represents in South Korea the interests of commercial banks, including Shinhan and Woori - they, in particular, are exploring the possibility of using blockchain for cross-border money transfers.
The new blockchain system, which, according to KFB, will be available for online and mobile banks, is one of the first blockchain initiatives of South Korean commercial banks aimed at interacting with the mass consumer.
According to the Korea JoongAng Daily, in November 2017 KFB, in conjunction with local financial institutions, formed a banking blockchain consortium, after which investigations began to create an alternative authentication system.
The beta test of BankSign began in April after the government of South Korea abolished the mandatory use by banks of the traditional system, which gave the banking industry scope for using more advanced methods.