South Korea’s Shinhan Bank Builds Pilot Platform for Central Bank Digital Currency

Shinhan Bank has built a pilot platform for a potential South Korean central bank digital currency (CBDC) with assistance from LG CNS.

• The Seoul-headquartered bank built the blockchain-based platform in preparation for the issuance of a CBDC by the Bank of Korea (BOK), the Yonhap News Agency reported Monday.
• According to a Shinhan Bank official, should the central bank decide to move forward with the issuance, it would require an intermediary agency to distribute and encourage use of the digital won.
• The platform divides the CBDC's issuance into general funds for individuals and disaster support funds issued to support businesses and local government.
• The BOK has conducted research into the issuance of a CBDC, results for which were published in February.
• The central bank is yet to decide whether the digital won would be distributed directly to consumers or via an intermediary such as Shinhan Bank.

See also: Bank of Korea Chief on CBDC: Better Right Than Fast