On October 28, Shinhan Bank announced that it has signed a business partnership agreement with LG CNS to build a pilot blockchain-based digital currency platform. This agreement was carried out for future digital currency technology joint research and business cooperation with LG CNS in order to prepare for changes in the financial market expected when the BOK issues digital currency.

Together with LG CNS, Shinhan Bank plans to establish a model for issuance, distribution, charge, payment, and currency exchange, as well as settlement of the digital currency to verify key functions and analyze the impact on commercial banks and customers. The possibility of collecting and utilizing financial data generated by the flow of funds will be also reviewed.

While the central banks of each country are conducting digital currency research, the BOK also began researching digital currency in April and has been conducting digital currency business process analysis and external consulting since August.

Shinhan Bank has experience in building blockchain-based qualification verification services, blockchain-based policy fund loan services, DID authentication, and private key management services based on its own blockchain integration platform.

An official at Shinhan Bank said, “We will try to provide differentiated value to our customers based on our own experience in blockchain technology. Starting with this agreement, we will continue to collaborate with LG CNS on blockchain technology.”

Translated by Young Hwang