South Korean blockchain platform Klaytn has announced a partnership with the ConsenSys team to help the central bank with a national digital currency project.
Klaytn is a subsidiary of Kakao, which operates the largest social network Kakao, whose virtual “population” has already exceeded 50 million people. Most likely, Klaytn is already developing a blockchain for the central bank of the Republic of Korea.
But a question arises for the team, at least because of the publicity of their blockchain. The company's network may be more heavily regulated than other public blockchains due to the fact that the governing board has control over the consensus network. Among the council members are such eminent players as LG, UnionBank and others.
Whether it is confidential enough and whether it is worth using CBDC on a public blockchain is a moot point. In addition, one of the main aspects that worries any bank is the security of not only the entire electronic banking system, but also the customers. Perhaps for this Klaytn will use the experience of the guys from ConsenSys. Together, they will be able to create a sufficiently secure blockchain that will provide reliable data hiding, so worried about any national bank. In addition, ConsenSys already had experience assisting CBDC projects in Thailand, France, Australia and Hong Kong.
Today, most of the world's central banks are baffled not so much by the creation of the CBDC as by its two-tier structure. The bank itself is responsible for all the processes occurring at the first level, but a company with its own blockchain, like Klaytn, can be responsible for the second level of the system. Whether a South Korean bank will use such a hierarchy and when it will present its own project is a matter of time.