Shinhan Bank Partners with LG CNS to Design South Korea’s Digital Currency

Shinhan Bank’s Ambitious Digital Currency Venture

In a groundbreaking stride towards the future of finance, Shinhan Bank is forging a partnership with the Bank of Korea to develop a national digital currency. Picture this: a fully functional digital won zipping around the digital highways of South Korea, thanks to the innovative pilot platform crafted with the tech-savvy folks at LG CNS.

The Pilot Project Unveiled

Shinhan Bank and LG CNS have whipped up a virtual model for a Central Bank Digital Currency (CBDC) that has everyone buzzing. This model allows the Bank of Korea to issue CBDCs while commercial institutions like Shinhan Bank step in as the intermediaries. That means your beloved KBKs (Korean Bank Kids) will be right in the middle of your digital transactions!

The Role of Intermediaries

According to Shinhan Bank, these intermediaries aren’t just along for the ride – they are essential for making sure that the digital currency reaches the masses. They’ve stated, “If the Bank of Korea issues a CBDC, an intermediary agency will be necessary for the smooth distribution and use of digital currency.” Think of them as the friendly delivery drivers in the world of digital transactions.

Applications and Functionalities of the CBDC

In the shiny new CBDC system, individuals and businesses will be able to engage in payments, remittances, and foreign exchange transactions. Shinhan has cleverly designed it to segregate CBDC issuance into various categories: personal funds, like your paycheck, and government funds, reserved for emergencies. Talk about organized currency!

A Peek into the Blockchain Used

While the report was a treasure trove of information, it did leave us hanging by not specifying which blockchain network was utilized. It’s like ordering a mystery dish without knowing the main ingredient! The clam-up from Shinhan Bank and LG CNS regarding further comment only adds to the intrigue.

The Road Ahead

Shinhan Bank is not just dipping its toes in the blockchain pool; it seems like it’s going for a full-on cannonball! Earlier this year, the bank jumped into the digital asset custody pool by investing in Korea Digital Asset Trust and participating in a hefty funding round for Blocko. It seems the digital revolution is in full swing.

Bank of Korea’s Progress on CBDC Trials

Meanwhile, the Bank of Korea isn’t sitting idly by. After kicking off trials for the digital won back in April 2020, they made headlines with a recent report highlighting some crucial legal barriers that still need addressing. It’s evident that before everyone can start playing with the digital won, there’s some groundwork to be done!