South Korean Shinhan Bank, together with LG CNS, has completed the creation of a demo platform for testing the issuance and distribution of the state cryptocurrency.
According to a statement from Shinhan Bank, when the Bank of Korea releases the government’s cryptocurrency, it will need the involvement of intermediaries such as Shinhan Bank. Anticipating this, the bank created a platform that allowed the “virtual” Bank of Korea to issue digital currency on the blockchain and transfer it for distribution to Shinhan Bank as an intermediary.
Through its demo platform, the bank tested the distribution of the state cryptocurrency to individuals who could use it for payments, money transfers, and currency exchange. Individuals could convert money from their bank account into digital won. LG CNS and Shinhan Bank plan to continue experimenting.
Recall that last fall, the Bank of Korea moved to the second phase of testing its digital currency and was looking for consulting partners to implement the second stage of the plan to release the state cryptocurrency. The Central Bank of South Korea also said it will test the distribution of the state cryptocurrency in 2021.