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Korean cacao blockchain Klaytn partners with ConsenSys to see CBDC’s efforts

Cryptocurrency

Klaytn and ConsenSys partner

It turns out that Ethereum (ETH) developer ConsenSys and Korean Internet giant cacao blockchain project Klaytn have entered into a strategic alliance.

The goal is to develop Klaytn’s private platform with a view to participating in the Central Bank Digital Currency (CBDC) pilot program scheduled for the end of this year.

Klaytn is an Ethereum-based public blockchain developed by Ground X, a blockchain subsidiary of Cacao. Through this partnership, the development team will improve the functionality of the Klaytn platform and develop a private version suitable for the operation of the CBDC.

The following three points are listed as specific functions of the platform.

  • Ensuring privacy: Reflects the data protection requirements of financial institutions
  • Address scalability with Ethereum’s Layer 2 solution
  • Realization of interoperability that connects multiple blockchains

ConsenSys leverages enterprise stacks (ConsenSys Codefi Asset, Codefi Payments, MetaMask, etc.) to build solutions optimized for the CBDC platform.

“We are pleased to work with ConsenSys to strengthen our public network and build a private network that can successfully respond to CBDC distribution tests,” said Jason Han, CEO of Ground X.

He added that he wanted to improve the interoperability between Ethereum and Klaytn so that digital assets could seamlessly move between the two chains.

Central Bank Digital Currency Plan

In October last year, it was reported that the Bank of Korea, the central bank of South Korea, is planning a distribution test of CBDC in 2021. The CBDC pilot program was announced in April last year, but the first stage, requirements definition and design, and the review of the technology required for project implementation have already been completed. We were in the second phase of analyzing and examining business-related processes.

Relation:South Korean central bank to test digital currency distribution next year

At that time, it was revealed that the Bank of Korea had discussed CBDC with private blockchain companies including Klaytn, and a Bank of Korea official said, “We interviewed about cacao technology and current business,” local media Paxnet I’m telling News. It seems that Shinhan Bank and LG CNS of LG Group of Korea are also developing and preparing a solution for the CBDC test.

The CBDC will be issued, distributed, remitted, settled and redeemed in the pilot virtual environment.

The Central Bank of South Korea states that this pilot program is a demonstration experiment on function and safety and does not necessarily lead to the actual issuance of CBDC.

ConsenSys CBDC project

In partnership with Klaytn, Charles d’Haussy, Head of Asia Pacific at ConsenSys, said ConsenSys has a proven track record of supporting CBDC testing programs at eight major central banks and issues CBDCs safely and efficiently. He emphasized that he “has unparalleled expertise and infrastructure tools” when it comes to building a network for this purpose.

ConsenSys also participates in CBDC projects around the world, including the Bank of Thailand, the Hong Kong Monetary Authority, the Bank of France and the European Central Bank, and the Reserve Bank of Australia.

Relation:US ConsenSys participates in digital euro experiment ──Technology provided by DVP payment etc. with a view to digital securities cooperation

ConsenSys successfully raised $ 65 million this month. In addition to financial giants such as Mastercard and JP Morgan, blockchain-related companies such as Maker Foundation and Alameda Research have invested.

The funds raised will be used for the development of DeFi (decentralized finance), Web3.0 (decentralized internet), and blockchain infrastructure for enterprises, and will promote the integration of conventional financial services and blockchain.

MasterCard praised ConsenSys’ enterprise network, Enterprise Ethereum, for its commitment to digital currency-specific strategies, such as supporting central banks considering issuing CBDCs.

Relation:Financing from Ethereum developer ConsenSys, Mastercard, JP Morgan, etc.

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