Ground X chosen as preferred bidder for CBDC project

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Ground X chosen as preferred bidder for CBDC project

Bank of Korea's headquarters in central Seoul [YONHAP]

Bank of Korea's headquarters in central Seoul [YONHAP]

 
Kakao's blockchain technology affiliate Ground X has been selected as the preferred bidder for a central bank digital currency (CBDC) project run by the Bank of Korea, the bank said Tuesday.
 
Naver affiliate Line Plus and SK Inc. also bid for the project.
 
Ground X will participate in the project in partnership with its affiliates KakaoBank, Kakao Pay and U.S. Ethereum-based technology developer ConsenSys, it said.
 
As Ground X has its own public blockchain project dubbed Klaytn, it is likely the company will base the CBDC on its existing technology.
 
Korea's central bank has been working on developing CBDC technology since last year, as the world's major central banks started looking into the potential of CBDCs as their answer to cryptocurrencies, which are volatile and largely beyond their control.
 
The major goal of the 10-month project is to verify the basic functions of a CBDC, from issuance and distribution to redemption, and also its application, like payments offline and online in different scenarios.
 
The budget for the project is 4.96 billion won ($4.3 million).
 
Testing of the CBDC will likely begin from August.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]
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