In South Korea, leading commercial banks have selected local fintech platform CenterPrime and Oracle system Chainlink to bring foreign exchange rate data feeds from local banks to the decentralized finance (DeFi) space. CenterPrime has access to the Korean open banking API that streams foreign exchange data from several local banks in the country.
Developing Country’s Perspective
Such integration would see CenterPrime share foreign exchange rates from leading Korean banks, including the Industrial Bank of Korea (IBK), Ngonghyup Bank, Shinhan Bank, and Hana Bank to Chainlink’s decentralized oracle network.
Access to foreign exchange rates would be enabled in Korea’s local currency Korean Won. The price feeds would include Korea Won (KRW), China Yuan (CNY), Euro exchange rate (EUR), US dollar (USD), and many more.
The data would be accessible for DeFi service providers operating in the network, thus allowing them to access decentralized exchange rate data when creating smart contracts on blockchain platforms.
The development would bring more Korean users to DeFi while DeFi service providers would be leveraged as their exchange rates are provided by top commercial banks.
The development opens floodgates for a tremendous expansion in blockchain-based fintech applications operating DeFi and cross-border applications that build unique home-group products priced in the local currency Korean Wons. The development also transforms the capabilities of fintech and open banking services, therefore, bringing breakthrough innovations for the fintech industry in the country.
This is the first time in history that has happened in which blockchain apps would have the capability of accessing decentralized foreign exchange rates compiled by leading banks in South Korea.
Saving Traditional Finance with DeFi
DeFi has created a new wave of innovation that is shaping traditional finance. Just like Bitcoin is a peer-to-peer-cash, the DeFi system is a peer-to-peer service that functions without the need for intermediaries. With such a peer-to-peer electronic financial instrument system, projects are using blockchain and cryptographic tokens to enable anyone to own, transfer, and issue financial instruments.
South Korea is one of the most advanced and largest economies in the world. The country has one of the highest rates of cryptocurrency adoption in the globe. Having access to the decentralized data from the traditional financial markets makes the country set to expand the base of the DeFi use case.
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