Bank of Korea (BoK), the central bank of South Korea, has chosen Kakao’s blockchain subsidiary as a technology provider for its digital currency pilots.
It has been reported that Kakao’s Ground X won the Bank of Korea’s central bank digital currency (CBDC) tender, becoming the principal technology supplier for blockchain-based digital won simulations.
However, the central bank announced that Ground X will participate in the South Korean CBDC project in cooperation with United States-based blockchain company ConsenSys as well as other Kakao affiliates like KakaoBank and Kakao Pay.
The report said that ConsenSys, focused on infrastructure and decentralized applications for the Ethereum blockchain, will contribute to the CBDC project by applying in-house solutions like ConsenSys Quorum and ConsenSys Codefi.
Likewise, earlier this month, the BoK opened a bidding process for firms interested in conducting a blockchain-enabled CBDC simulation project. According to Korea JoongAng Daily, the first tests are likely to kick off next month. Launched by Kakao in 2018, Ground X is known for operating its own blockchain platform called Klaytn.
ConsenSys has already been collaborating with Ground X on developing a private platform for issuing a South Korean CBDC. The initiative aims to test the CBDC in a virtual simulation environment based on distributed ledger technology, exploring potential use cases related to CBDC issuance, redemption, electronic payments, and settlement, as well as potential integrations related to purchases of digital artwork and copyrights.
Thus, the BoK initially announced the country’s plans to test the distribution of a digital won in February.
Source: Cointelegraph | Image: Coindesk