On Nov. 15, KEB Hana Bank became the first Korean bank to get close to using blockchain, or decentralized ledger technology, for customer authentication and payment service. South Korea's Coinplug is the country's third bank to test a blockchain prototype for customer authentication and payments, claiming it is not far off implementing it for commercial use. Blockchain 's transparency and encrypted networks are expected to increase security and reduce costs for banks and customers. However, it is highlighted that existing regulation will need to be changed to accommodate the new technology in banks’ electronic financial services. On average, venture capital funding in blockchain and bitcoin firms grew by 294% p.a. June according to a CoinDesk study.
South Korea's Coinplug is the country's third bank to test a blockchain prototype for customer authentication and payments, claiming it is not far off implementing it for commercial use. Blockchain 's transparency and encrypted networks are expected to increase security and reduce costs for banks and customers. However, it is highlighted that existing regulation will need to be changed to accommodate the new technology in banks’ electronic financial services. On average, venture capital funding in blockchain and bitcoin firms grew by 294% p.a. June according to a CoinDesk study.