Naver to take part in Bank of Korea s digital currency test
Posted : 2021-05-14 16:31
By Kim Bo-eun
Korean internet services company Naver is set to take part in the Bank of Korea s (BOK) central bank digital currency (CBDC) tests. Its participation is set to serve as an advantage when the government selects private-sector partners in issuing the currency.
CBDC is a term used to distinguish the digital currency of central banks from those of the private sector. Central banks around the world are currently developing and testing digital currency. As a frontrunner, the People s Bank of China has launched testing of its digital currency in cities such as Suzhou, Shenzhen and Chengdu.
South Korea’s platform giant Naver Corp. is taking the leap into the digital currency platform market with its plans to participate in the Bank of Korea-led central bank digital currency (CBDC) project.
According to the IT industry on May 13, the Bank of Korea is set to kick off the CBDC pilot program in the second half of this year, in which Naver will participate via its subsidiaries Naver Financial Corp. and LINE Plus Corp.
Naver is eyeing digital currency as one of its growth engines, alongside commerce and content.
The CBDC pilot program will test the utility and security aspects of the project, such as creating, distributing and issuing digital currencies as well as making transfers and payments.