Seoul:The Bank of Korea (BOK) announced on Tuesday that it is enhancing its collaboration with the Bank of England (BoE) on various tokenization initiatives.
According to Yonhap News Agency, Sarah Breeden, the BoE's deputy governor for financial stability, visited the BOK on Monday. During her visit, she discussed innovations in payment and settlement with BOK officials.
Breeden, along with other BoE representatives, shared updates on tokenization projects, including the international Project Agora and South Korea's Project Hangang, with their BOK counterparts.
The BOK emphasized its commitment to actively share its experiences with tokenization projects and participate in global discussions on the matter. Payment tokenization involves replacing sensitive payment data with a unique, randomly generated string of characters, known as a token, to enhance security.
Project Agora, which is led by the Bank for International Settlements, investigates the potential improvements that tokenized commercial bank deposits and tokenized wholesale central bank money can bring to the global financial system, especially in terms of cross-border payments.
Meanwhile, Project Hangang is a blockchain-based tokenization pilot project spearheaded by the BOK to test digital currency and wholesale central bank digital currency.