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South Korean public blockchain Klaytn has announced a partnership with Ethereum developer ConsenSys to advance the country’s central bank digital currency (CBDC) project. As part of the collaboration, ConsenSys will be developing a private version of Klaytn, in preparation for its upcoming CDBC pilot program in South Korea.
Klaytn Blockchain Partners With ConsenSys
Klaytn was founded by Ground X, a subsidiary of Kakao, the largest social network of South Korea with over 50 million users. Since then, Kakao has expanded across various sectors from shopping, travel, among others.
In 2019, the company founded the KLAY blockchain. Its KLAY token is currently at the time the 25th largest cryptocurrency by market cap.
The blockchain company’s partnership will see ConsenSys developing a private version of KLAY, in preparation for its upcoming CDBC pilot program in South Korea.
The project will further encompass making KLAY compatible with Ethereum layer-2 solutions and look towards building interoperable bridges with other blockchains.
In the announcement release, Jason Han, the CEO of Ground X, stated:
“We are happy to cooperate with ConsenSys to strengthen our public network and also build a private network that can cater to a successful CBDC distribution test,” said “We also look forward to improving the interoperability between Klaytn and Ethereum to allow digital assets to seamlessly flow across two chains.”
Just last year, the Bank of Korea acknowledged developing central bank digital currency with Klaytn amongst other private players.
ConsenSys Going to Build Private Blockchain for Klaytn
Klaytn is a public blockchain-based on Ethereum but is more controlled than others because a governing council of approved corporates operates its consensus network. Some of the governing members include crypto companies as well as big brands such as Worldpay, LG, SK Networks, UnionBank, and Hanwha Systems.
Charles d’Haussy, Managing Director, the Asia Pacific at ConsenSys, said:
“Through this collaboration, we will strengthen the efficacy of the Klaytn platform, readying it to process transactions which would conceptually support CBDCs, and also optimize it for Ethereum Layer 2 integration.”
Since a CBDC project is involved there is a need for greater privacy. Hence, ConsenSys will be developing a private blockchain to enable data protection that financial institutions demand.