NHN KCP and Shinhan Bank Join Bank of Korea CBDC Pilot Phase 2

NHN KCP and Shinhan Bank announced on the 27th their participation in Phase 2 of the Bank of Korea's central bank digital currency (CBDC) pilot program, Project Hangang. The companies will leverage NHN KCP's online and offline payment infrastructure to expand the practical use of deposit token-based payments and verify commercialization potential. Project Hangang is a CBDC pilot initiative by the Bank of Korea designed to test a distributed ledger technology (DLT)-based 'Two-tier Monetary System.'

Shinhan Bank Records High Transaction Volume in Phase 1 Pilot

In the Phase 1 real-transaction pilot conducted earlier, Shinhan Bank recorded a high proportion of both transaction volume and usage count, confirming the potential for deposit token utilization. The first phase demonstrated practical feasibility of deposit token payments in real-world environments.

NHN KCP and Shinhan Bank Plan Deposit Token Payments Across Merchant Networks

Phase 2 of the project focuses on expanding use cases and improving user experience (UX). The two companies plan to apply deposit token payments in various daily-life environments including convenience stores, large marts, and online shopping malls by utilizing NHN KCP's existing online and offline merchant networks. Merchants can adopt deposit token payments without replacing terminals or overhauling systems, as the existing NHN KCP payment infrastructure can be used directly. Shinhan Bank will sequentially expand services centered on major merchants and secure real-use data.

Smart Contract Technology to Simplify Payment Processes

The companies expect to simplify payment procedures and increase operational efficiency by utilizing smart contract technology, while also improving consumer payment convenience. Park Jun-seok, CEO of NHN KCP, stated, "Through the cooperation of both companies, we have been able to verify the potential for digital currency use in actual payment environments. We will implement a payment experience that both merchants and consumers can feel."

FAQ

What is Project Hangang Phase 2?

Project Hangang Phase 2 is the second stage of the Bank of Korea's CBDC pilot program testing a distributed ledger technology (DLT)-based 'Two-tier Monetary System.' NHN KCP and Shinhan Bank announced on the 27th their participation to expand deposit token payment use cases and verify commercialization potential.

How will NHN KCP merchants adopt deposit token payments?

Merchants using NHN KCP's payment infrastructure can adopt deposit token payments without replacing terminals or overhauling systems. The companies plan to apply the payments across convenience stores, large marts, and online shopping malls using NHN KCP's existing online and offline merchant networks.