EY-led consortium submits bid to further develop South Korea’s CBDC

EY-led consortium bids to work on Korea's CBDC pilot project. It has made the first and only bid to construct Digital won.

By · Oct 24, 2020 . 6min read

EY-led consortium South Korea's CBDC news

The Central Bank of Korea (BOK) is receiving a mix of reactions as it plans to launch its first pilot for the digital won. The bank is still yet to make an official decision on whether it will launch the central bank digital currency (CBDC) or not. However, it recently claimed that it would consider the matter once the pilot is complete. A consortium led by Ernst and Young (EY) subsidiary in Hanyoung has made the first and only bid to create the business model for the Bank of Korea’s Central Bank Digital Currency (CBDC) project.

According to reports from local news outlet ZDNet Korea, the consortium which may be preferred for the BOK’s CBDC pilot system design if no other company offers a bid before the deadline. The consortium consists of Samsung SDS and Naver line. The deadline is revised to October 29. With the project’s budget expectation of 800 million Korean Won, the work as specified includes producing the complete business model for the proposed Digital Won. However, industry experts note that only some companies have the demanded expertise to carry this out.

EY to showcase its blockchain capabilities on a grander level

EY is amongst the Big Four auditing firms. With strong accounting and consultancy background, it will command the planning processes for each task operating the CBDC as a whole. However, Samsung SDS and Naver Line will participate in the form of the system architecture. In case of more bids, there will be a technology evaluation on the EY led consortium.

Ernst & Young has been investigating the tremendous abilities of blockchain technology for a while now. It ventured into the public space with its solution for public funds management launched in October 2019. EY will get an opportunity to showcase its blockchain competence on a higher level. However, it depends on whether the consortium will win the Bank of Korea’s bid.

CBDCs an increasingly hot area of development in the blockchain space

Research and development of Central bank digital currencies are taking place in an increasingly aggressive way. Recently, the Central Bank of Bahamas just launched a digital currency dubbed the “Sand Dollar” for the whole country. The digital currency Sand Dollar aims to generate more financial inclusions among many Bahamas’ remote islands. However, the Bahamas beat various countries in the race to launch a CBDC.

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