Shinhan Bank Signs MOU with LG CNS to Pilot Digital Currency Platform Development

Pilot Construction of Blockchain-Based Digital Currency Platform in Preparation for Bank of Korea Digital Currency Issuance
Joint Research and Business Collaboration on Digital Currency Technology with LG CNS

On the 27th, at the LG CNS headquarters located on Magokjungang-ro, Gangseo-gu, Seoul, Shinhan Bank Digital Group Vice President Lee Myung-gu (right) and LG CNS Vice President Hyun Shin-kyun (left) pose for a commemorative photo during the signing ceremony of the Memorandum of Understanding for blockchain-based CBDC technology cooperation between Shinhan Bank and LG CNS.

[Asia Economy Reporter Kangwook Cho] Shinhan Bank announced on the 28th that it has signed a business agreement with LG CNS to pilot a blockchain-based digital currency platform in preparation for the issuance of the Bank of Korea's Central Bank Digital Currency (CBDC).

As central banks around the world conduct research on digital currencies, the Bank of Korea also began its digital currency research in April and has been promoting digital currency business process analysis and external consulting since August.

This business agreement was made to proactively prepare for the anticipated changes in the financial market upon the issuance of the Bank of Korea's digital currency by piloting a blockchain-based digital currency platform with LG CNS and to conduct joint research on digital currency technology and business cooperation in the future.

First, Shinhan Bank plans to build models for expected scenarios of the Bank of Korea's digital currency, including issuance/distribution, charging/payment, and exchange/settlement, together with LG CNS, verify key functions, and analyze the impact on commercial banks and customers. Subsequently, it will review the possibility of collecting and utilizing financial data generated by cash flow.

Shinhan Bank has experience building blockchain-based credential verification services, blockchain-based policy fund loan services, DID authentication, and private key management services based on its own integrated blockchain platform.

A Shinhan Bank official said, "Starting with this agreement, we will continue to collaborate with LG CNS on blockchain technology," adding, "We will strive to apply advanced blockchain technology to various financial services to provide differentiated value to customers."