Bank of Korea selects Ground X for CBDC blockchain simulations

Friday 23 July 2021 10:44 CET | News

Bank of Korea has announced Ground X, founder of the Klaytn public permissioned blockchain, as the provider for its central bank digital (CBDC) currency tender, according to Ledger Insights

Ground X is the blockchain subsidiary of Kakao, Korea’s largest social network. The company will work with other subsidiaries Kakao Pay and Kakao Bank on the CBDC simulation for a digital won with a budget of up to Won 4.96 billion (USD 4.4 million).

In terms of technology, the Klaytn blockchain created by GroundX is derived from Ethereum, and Ground X recently partnered with Ethereum development house ConsenSys to build a private blockchain for CBDC work. ConsenSys is working on multiple CBDC projects including in Thailand, Hong Kong, France, and Australia.

The Kakao subsidiary beat two other bidders, SK and Line Plus, a joint venture between SoftBank and social media company Naver. It looks like the most significant factor in losing the bid was pricing. Line Plus ranked poorest on price, scoring 8.1 compared to 9.98 from Ground X. But there was little to choose between them regarding expertise, with Ground X narrowly winning with a score of 85.4 versus 84.6 for Line Plus and SK was assessed at 80.5.

Ground X will start working in August 2021, with the first phase to be completed by December 2021. Assuming the project progresses, the central bank wants to complete the functionality for protecting personal information by February 2022.

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Keywords: CBDC, blockchain
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: Korea, Republic of
This article is part of category

Blockchain & Cryptocurrencies