Blockchain for Banking News

Bank of Korea in CBDC talks with Klaytn public blockchain

digital won currency cbdc

The Bank of Korea (BOK) has confirmed it is discussing central bank digital currencies (CBDC) with private blockchain firms, including domestic public blockchain Klaytn.

Two weeks ago, we reported that the Bank of Korea plans to use blockchain or distributed ledger technology (DLT) for its digital won experiments, referring to it as a CBDC ledger. It also outlined a two tier distribution system with banks performing the distribution similar to cash and also dealing with Know Your Customer (KYC) processes.

Klaytn is a little different from many public blockchains. The network was founded by GroundX, the blockchain subsidiary of Kakao, South Korea’s largest social network, which boasts more than 50 million monthly users. In terms of the governance council, it features a mix of crypto companies as well as major enterprises such as Worldpay, LG Electronics, SK Networks and UnionBank.

Kakao is also no stranger to payments with its Kakao Pay app, which has 30 million users.

A BOK official confirmed the talks, telling Korea’s Paxnet News: “In order to obtain relevant information, we have conducted an interview on Kakao’s technology and current business. It has not been decided which platform to use, and it will be selected when building a demonstration project next year after private consulting proceeds.” 

Like many central banks, the Bank of Korea has not decided whether to proceed with a CBDC.

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