The second project results of the blockchain-based digital currency (hereinafter referred to as CBDC), which the Bank of Korea is focusing on, have been derived.
Kakao Pay (CEO Shin Won-geun) announced on the 11th that it has completed the development of “offline CBDC” and “digital asset purchase” among the Bank of Korea’s “central bank digital currency secondary business.”
The Bank of Korea carried out the second phase of the project for 10 months from August 2021 to check the possibility of technological implementation of blockchain-based CBDC. Kakao Pay said it worked with 11 companies, including the Bank of Korea, to check the application of CBDC and led the construction of offline CBDC and digital asset purchases.
“Offline CBDC” was developed with the aim of enabling the movement of digital currency even when the Internet or power is blocked. Kakao Pay has developed a payment payment service that enables CBDC transactions through its own communication functions such as NFC or Bluetooth when both remittance and recipient’s computer devices (mobile devices, IC cards, etc.) are not connected to the communication network. Kakao Pay has collaborated with Samsung Electronics and KonaI to implement it so that illegal copying or abnormal transactions can be blocked by utilizing safe storage space (SE) of trading devices. This is expected to be used as a backup payment method along with real currency in a situation where it is difficult to use payment services due to obstacles and disasters of telecommunication companies.
“Digital Asset Purchase” is a function of purchasing digital assets (NFTs) issued by other blockchain platforms using CBDC issued by the Bank of Korea. Kakao Pay has established a system that enables safe payment between CBDC and digital assets built on different blockchains using smart contract technology.
Kakao Pay plans to continue to carry out additional CBDC projects by the Bank of Korea and strengthen its competitiveness in related technologies in preparation for commercialization of CBDC in the future.