The Bank Of Korea has selected a blockchain subsidiary of local internet behemoth Kakao as a technology provider for its digital currency pilots.

Kakao’s Ground X Will Host As A Technology Provider For The Bank Of Korea CBDC 

According to local news source Korea JoongAng Daily, Kakao’s Ground X won the Bank of Korea’s central bank digital currency (CBDC) procurement, becoming the primary technology provider for blockchain-based digital won simulations.

Ground X will join in the South Korean CBDC initiative in collaboration with the United States-based blockchain startup ConsenSys, as well as other Kakao affiliates such as KakaoBank and Kakao Pay, according to the central bank.

Kakao’s Ground X picked as preferred bidder for BOK’s digital currency project#CBDC #digitalcurrency #kakao https://t.co/HCO39V18Gc

— The Korea Herald (@TheKoreaHerald) July 20, 2021

ConsenSys, which focuses on infrastructure and decentralized applications for the Ethereum blockchain, will contribute to the CBDC project by utilizing in-house technologies like as ConsenSys Quorum and ConsenSys Codefi, according to a tweet from the company.

Kakao was founded by Ground X in 2018, is well-known for running its own blockchain platform called Klaytn. ConsenSys has already been working with Ground X to create a private platform for issuing a CBDC in South Korea.

The Stakes Are $4.4 Million, With The First Findings Expected In 2021

The total project funding is projected to be $4.4 million. Its first stage is expected to be finished in late Q4 of 2021. It will, in general, cover the core ideas of central bank digital currencies through study and testing.

The CBDC program’s second phase will begin in 2022. Researchers will be highly focused on privacy problems.

The initiative intends to test the CBDC in a virtual simulation environment based on distributed ledger technology, investigating potential use cases related to CBDC issuance, redemption, electronic payments and settlement, and potential integrations related to the purchase of digital artwork and copyrights. 

The country’s central bank announced plans to test the circulation of a digital won in February.