The South Korean central bank has chosen Ground X for its digital currency experiment

Must Read

Harmony’s $100M Hack Was Due to a Compromised Multi-Sig Scheme, Says Analyst

Harmony’s Multi-Sig Exploited Polygon’s CSO Says, Harmony Protocol’s Founder Found Evidence That ‘Private Keys Were Compromised’

Uniswap Set To Add NFTs To Its Product Lineup With Latest Acquisition

On Tuesday, a popular crypto start-up and founders of a leading decentralized exchange of the name Uniswap...

Yuga Labs vs. Ryder Ripps: Decoding the impact of the lawsuit on the performance of ‘Apes’

Yuga Labs is the limelight again. However, this time around the NFT giant announced that it has...

Ground X, the blockchain branch of South Korean tech company Kakao Corp., is making the headlines today after being picked to run trials for the Bank of Korea’s digital currency.

The South Korean central bank was searching for companies to join 10-month cooperation. Kakao will now be responsible for storing and validating unlisted assets as nonfungible tokens [NFTs] on its public blockchain, as the bank was searching for technology help to build its central bank digital currency.

Unlisted investments are shares or assets that aren’t traded on a public exchange. As a result, they are typically traded over-the-counter [OTC]. These shares are generally provided prior to a public offering.

Surprisingly, South Korea’s OTC trading sector has been booming, with K-OTC’s capitalization reaching a new high of over 1 trillion won ($1.1 billion) in 2020.

Kakao's Ground X Becomes Supplier for Bank of Korea's CBDC Pilot -  SuperCryptoNews

The increase in OTC trading is an indication of popular interest in digital currencies. The government has imposed strict regulations on crypto-businesses and compelled compliance. Many small companies, on the other hand, have had difficulty finding banking partnerships and are considering shutting down permanently. In reality, big and well-known exchanges like Bithumb were compelled to cut partnerships with foreign exchange platforms. As per a formal statement,

“The trademark use contract with Bithumb Global Exchange and Bithumb Singapore Exchange, which has been using the brand and trademark after signing a trademark agreement with Bithumb Korea Co., Ltd., will be terminated. Accordingly, we inform you in advance of the termination of the trademark license agreement and its schedule as follows.”

Despite the efforts taken to prevent leading exchanges from being de-banked, they still face the possibility of being denied registration with the Korean Financial Intelligence Unit. The reason is that  Since banks are still analyzing the hazards related to crypto businesses.

Nonetheless, the Bank of Korea expects to complete the contract with Ground X by the end of the month, with the trial beginning in the following month.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest News

Harmony’s $100M Hack Was Due to a Compromised Multi-Sig Scheme, Says Analyst

Harmony’s Multi-Sig Exploited Polygon’s CSO Says, Harmony Protocol’s Founder Found Evidence That ‘Private Keys Were Compromised’

Uniswap Set To Add NFTs To Its Product Lineup With Latest Acquisition

On Tuesday, a popular crypto start-up and founders of a leading decentralized exchange of the name Uniswap announced the acquisition of Genie,...

Yuga Labs vs. Ryder Ripps: Decoding the impact of the lawsuit on the performance of ‘Apes’

Yuga Labs is the limelight again. However, this time around the NFT giant announced that it has filed a lawsuit against old...

Anonymous vows to bring Do Kwon’s ‘crimes’ to light

Hacktivist group Anonymous has pledged to “make sure” Terra co-founder Do Kwon is “brought to justice as soon as possible” in regard...

SEC requests comments on the guidelines for ICO portals

To avoid conflicts of interest and clarify the rules of outsourcing, the Securities and Exchange Commission (SEC) asks the public for feedback...
- Advertisement -

More Articles Like This