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The Bank of Korea completed CBDC tests on NFT trading


South Korean trials of CBDC-based NFT purchases
South Korea’s central bank, the Bank of Korea (BOK), was reported to have used its central bank digital currency to buy NFTs, according to a Yonhap News article from the 7th of November (CBDC).

The BOK announced that the CBDC’s virtual world built with distributed ledger technology was complete after a simulation and research effort that had been ongoing since August 2021( DLT).

The study indicates that “the process of purchasing NFTs with CBDCs was also implemented” with the standard activities required for a digital currency such as issuing, transacting, and remitting using the digital won.

Claims are made that this was accomplished in a simulated setting using a “digital asset system” built and uses a number of different distributed ledger technologies (DLTs) that feature smart contract capability, but few specifics are given.

The BOK also looked into how zero-knowledge proofs (zk proofs) could be used to protect sensitive data. Some implementations of Zk proofs protocols use NFTs as a digital ID solution; however, it is unclear whether or not the NFTs used in the project were associated with digital IDs.

By 2024, South Korea plans to provide blockchain-based digital IDs to its citizens for usage in a variety of sectors, including but not limited to finance, healthcare, taxation, and transportation.

About Nicolle

She is an Indian Freelance writer. She loves thinking, learning, and writing about all things Web3.

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