Banking News

Hyundai HDAC in talks with Korean central bank re digital currency custody

digital won korea cbdc

Today PaxNet reported that HDAC Technology, founded by the CEO of Hyundai BS&C, is in discussions with the Bank of Korea about central bank digital currency (CBDC) custody. While it’s currently only at the talks stage, the report says the digital won work is likely to start within the month. When the company first launched in 2017, its first solution was the Hyundai Pay Cold Wallet.

PaxNet contacted the central bank, which said no decision had yet been made, and it is in discussions with commercial banks as well.

Late last year, the Bank of Korea (BOK) confirmed it was discussing central bank digital currencies (CBDC) with private blockchain firms, including domestic public blockchain Klaytn.

In 2020, the central bank outlined a schedule for its CBDC work. Last year was the consulting phase, and the plan is to launch a trial this year. Yesterday the bank published a document about legal issues. Most central bank digital currencies are expected to have legal tender status, meaning payment cannot be refused. However, that requires all retailers to be able to support the technology.

HDAC, which is headquartered in Zug, Switzerland rather than Korea, ran an ICO back in 2018, raising 300 billion won ($27 million). It has developed a proof of stake blockchain protocol called Rizon. Additionally, it has enterprise blockchain activities. It’s working with Hyundai BS&C (now HN) on a traceability solution for quality control in automotive manufacturing.


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