Shinhan Bank builds a pilot digital currency platform against LG CNS and CBDC

[Digital Today Reporter Kang Jin-gyu] Shinhan Bank (Chief Jin Ok-dong) announced on the 8th that it has completed the pilot construction of a blockchain-based digital currency platform with LG CNS in preparation for the issuance of the central bank digital currency (CBDC) by the Bank of Korea.

Shinhan Bank predicted that if the Bank of Korea issues CBDC, an intermediary for the smooth commercial distribution and use of digital currency is needed, and to preemptively respond to its role as an intermediary, it has built a digital currency platform as a pilot.

In the digital currency platform, a virtual Bank of Korea issues CBDC and distributes it to an intermediary agency, and Shinhan Bank, an intermediary agency, pays the issued CBDC to individuals, and uses the CBDC issued by individuals and affiliates to inquire, settle, transfer, exchange, and recharge. It is configured to be able to. This platform was built in a blockchain-based token type (data management for each transaction) to secure transaction stability.

In addition, the form of issuance of CBDC is divided into general funds used by converting the balance in KRW held by individuals and disaster support funds issued by the government and local governments for specific purposes, and ledgers can be separately managed for each fund. In addition, the disaster subsidy was made to limit the use of the fund or to set the expiration date.

Shinhan Bank explained that this pilot construction was possible through LG CNS’ blockchain technology and know-how. Shinhan Bank and LG CNS plan to continue joint research and development based on blockchain technology in the future.

An official from Shinhan Bank said, “As the importance of CBDC has increased, we plan to actively respond to the situation at home and abroad,” and “We will continue to make various attempts, such as expanding the established platform and applying it to the bank’s internal system.”