A major Ethereum software startup, ConsenSys, will donate its technology to Ground X’s CBDC simulations in South Korea.
For its digital currency pilots, South Korea’s central bank has chosen a blockchain subsidiary of local internet giant Kakao as a technology provider.
Kakao’s Ground X had won the Bank of Korea’s central bank digital currency (CBDC) tender, becoming the principal technology supplier for blockchain-based digital won simulations, local news agency Korea JoongAng Daily reported Tuesday.
Ground X, in collaboration with US-based blockchain company ConsenSys and other Kakao affiliates like KakaoBank and Kakao Pay, will join in the South Korean CBDC initiative, according to the central bank.
ConsenSys, a company that focuses on Ethereum blockchain infrastructure and decentralised apps, stated on Twitter that it will contribute to the CBDC project by using in-house technologies such as ConsenSys Quorum and ConsenSys Codefi.
Today, the Bank of Korea chose GroundX for their digital currency project.
— ConsenSys (@Consensys) July 20, 2021
BoK has started a bidding process for companies interested in performing a CBDC simulation exercise using blockchain technology. The first tests are expected to begin next month, according to Korea JoongAng Daily.
Ground X, which was founded by Kakao in 2018, is recognised for its own blockchain platform, Klaytn. ConsenSys has already been working with Ground X on the development of a private platform for the issuance of a CBDC in South Korea.
The goal of the initiative is to put the CBDC to the test in a virtual simulation environment based on distributed ledger technology, looking at potential use cases for CBDC issuance, redemption, electronic payments, and settlement, as well as potential integrations with digital artwork and copyright purchases. In February 2021, the central bank announced the country’s plans to test the circulation of a digital won.