Line Plus, a subsidiary of the Naver-owned Line Corp., said Thursday that it had signed a memorandum of understanding with NuriFlex, a global provider of blockchain-based payment solutions, to develop a transaction platform for central bank digital currency targeting Latin American and African countries.

Under the business partnership, the two companies will set up the envisioned payment system in a way that complies with Latin American and African states’ financial regulations and provide it to the regions’ central banks, which are interested in issuing central bank digital currency, officials said. 

A CBDC is a digital token representing a particular nation’s fiat currency. It is issued and regulated by a country’s financial authorities. 

“By integrating NuriFlex’s business experience in Latin American and African countries with Line Plus’ blockchain technologies, we aim to help these nations to boost financial innovation driven by CBDC,” said Lee Hong-kyu, head of the Line Blockchain Lab, a research body that develops fundamental blockchain technologies at Line Plus. 

Established in 1992, NuriFlex mainly offers software for the utility industry, ranging from blockchain-based systems for cashless payments to internet of things platforms. The company is currently providing technological aid to the Cameroonian government as it moves to digitalize its health coverage system.

Meanwhile, Line Plus, which operates digital payment services in major economies such as Japan and Taiwan, holds high-security blockchain technologies that can process large amounts of transactions, part of the necessary infrastructure for CBDC activities. 

By Choi Jae-hee (cjh@heraldcorp.com)