Jul 1, 2022

Shinhan Bank and LG to release CBDC platform

South Korean bank Shinhan Bank will cooperate with the central bank of the country to issue digital currency of the Central bank of Korea (CBDC).

According to the South Korean CMI, work overThe release of digital news will be carried out in collaboration with the distribution of IT services of the LG LG CNS corporation. Both organizations have created a digital currency pilot platform on the main block, with the help of which the Kopei Bank will spread its CBDC.

With this, the Shinhan bank will not be responsible for the dissemination of the digital wave among individuals who can use them for payments and payments.

The intermediate platform will be fully basedon the block, which is explained by the need to ensure the stability of transactions. This distinguishes the South Korean CBDC from the digital yuan, with the creation and dissemination of which deviated from the technology of a specific peer.

Last month, Bank of Korea issued a legal document related to the release of CBDC, after which an application was made on the launch of the pilot.

“The transition from cash to digital currencycan increase GDP by as much as 3%, - noted in the Bank of Korea. - Currency digitalization will speed up money handling and reduce maintenance costs. Also, this will help the implementation of negative percentage rates, which can improve monetary management. "