Kakao’s blockchain subsidiary Ground X would be offering technological help to the central bank of South Korea for its digital currency pilots, according to an announcement.
On July 20, the local news agency Korea JoongAng Daily published a report stating that after winning Bank of Korea’s central bank digital currency tender, Ground X became the principal tech-supplier for blockchain-based digital won simulations.
As per the public announcement, Ground X would be working with the US-based blockchain company ConsenSys and other subsidiaries of Kakao, on this CBDC project.
The firm recently tweeted about its collaboration with the Bank of Korea for its CBDC project. It mentioned that ConsenSys would be helping the project by offering its in-house solutions, including ConsenSys Quorum and ConsenSys Codefi.
Korea JoongAng Daily, in its report, stated that the central bank of Korea organized a bidding process to select those companies which are interested in operating blockchain-enabled CBDC simulation project. It further mentioned that BoK is planning is to initiate the first test in August.
Ground X is a blockchain subsidiary company, launched in 2018 by Kakao. The firm manages its own blockchain platform called Klaytn.
This blockchain subsidiary along with ConsenSys will develop a private platform for issuing digital won.
In this pilot program, the bank will 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 artworks and copyrights.”
Initially, the central bank of Korea announced to test the distribution of digital won in February 2021.