The Bank of Korea(BOK) has chosen its preferred supplier to build a pilot program for its Central Bank digital currency (CBDC) pilot.
BOK has picked Ground X, a blockchain subsidiary of the nation’s tech giant kakao corp, the Kokera Herald reported Tuesday.
The bank of Korea announced that Ground X will participate in the South Korean CBDC project in cooperation with United States-based blockchain company Consensys. In addition to different Kakao affiliates like KakaoBank and Kakao Pay.
ConsenSys will contribute to the CBDC project by applying in-house solutions like ConsenSysQuorum and ConsenSyscodefi, the firm announced on Twitter.
According to the Korea JoongAng Daily report, BOK has said that they allocated 4.9 billion won ($4.4 million) to the pilot program. The first test is likely to begin in August. The major goal of the 10-month project is to verify the basic functions of a CBDC. From their issuance and distribution to redemption. And also its application, like payments offline and online in different scenarios.
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. ConsenSys has been working with central banks in Singapore, Australia and Thailand for their own CBDC projects.
The central banks around the world have been carrying out tests and studies on central bank digital currency issuance. The People’s Bank of China is a forerunner in a race, with real-world trails already being carried out in several cities.
