One of South Korea’s leading commercial banks is to pilot a new platform for a digital won, after working on the project in collaboration with LG subsidiary LG CNS.
Shinhan Bank is now hoping to collaborate with the country’s central bank with the blockchain-powered platform, in order to assist with the development and rollout of a central bank digital currency in South Korea.
The platform allows for the central bank to issue digital currency, while holding up commercial banks like Shinhan as intermediaries in the system. Emphasising the importance of the role banks would need to play as intermediaries, Shinhan said it would be necessary for the commercial banking sector to be involved.
“If the Bank of Korea issues a CBDC, an intermediary agency will be necessary for the smooth distribution and use of digital currency.”