The Central Bank of Korea selects Cocoa Ground X to conduct CBDC studies

South Korean tech giant Kakao Corp.’s blockchain arm, Ground X, has selected conduct a test of the digital currency of the Central Bank of Korea (CBDC).

The Bank of Korea is looking for companies interested in a 10-month cooperation agreement. The bank is also seeking technological support for the development of the CBDC, and Kakao will now be responsible for storing and verifying unlisted investments as non-fungible tokens (NFTs) on its public blockchain.

Unlisted investments are investments in company shares or assets that are not traded on the open market. As a result, they can often be traded over the counter (OTC). These stocks are usually offered for sale prior to the IPO.

Interestingly, the South Korean OTC trading market was booming, with K-OTC trading reaching a record market cap of over 1 trillion won, or $ 1.1 billion, by the end of 2020.

The rise of OTC trading is a sign of public enthusiasm for cryptocurrencies. Authorities recently took action against crypto companies and enforced compliance. However, many small exchanges struggled to find banking partners and had to close their doors permanently. In fact, large and well-known exchanges like Bithumb have been forced to cut ties with foreign exchanges, Bitcoin Magazine reported.

Although these steps are taken with the aim of not ending their partnership with the banks, they still run the risk of not being able to register with the Korean Financial Intelligence Unit. This is because banks are still assessing the risks associated with crypto businesses.

However, the Bank of Korea plans to finalize the deal with Ground X by the end of the month before the process begins next month.

Annie

According to Ambcrypto

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