South Korean commercial banking giant Shinhan and LG CNS, the IT division of the LG conglomerate, are creating a common platform for testing central banks’ digital currencies (CBDCs).
Shinhan and LG want to test CBDC
Both companies announced that they will collaborate on the development of the platform at the end of last year. LG CNS has worked on blockchain-related financial solutions with both Central Bank of Korea (BOK) and Korea Minting and Security Printing Corporation (KOMSCO). The latter entity quickly became one of the largest local stablecoin operators in the country.
As they say Electronic Times and Joongsokiup News, the new platform will allow customers and merchants to make financial transactions such as payments, transfers and exchanges using their CBDC resources.
The photos published by the bank so far show that the platform may not differ significantly from the interfaces of CBDC wallets. Many Chinese commercial banks have used these in recent digital yuan tests.
CBDC in South Korea and around the world
Currently, there is a growing number of central banks that analyze the idea of CBDC. Such research is carried out, for example, by Japan and some European countries. As we know, the NBP is to publish its report on this subject this year. The European Union also conducts its analyzes. The topic also appears more and more often in the statements of US politicians. The South Korean central bank, on the other hand, continues its work and is reportedly close to publishing the results of the pilot program.
So it seems Shinhan and the LG CNS believe that it is now a question of when, if not, central banks will start issuing CBDCs.
BOK has not yet commented on the information on the platform of both companies. However, we can guess that the two companies can count on cooperation with the authorities in terms of project development.
LG CNS itself claims to have completed more blockchain projects in the country than any other provider. He is currently working on integrating facial recognition solutions and blockchain technology for the authentication and payment industry.