South Korea and UK central banks deepen collaboration on payment tokenisation
The Bank of Korea and the Bank of England expanded their joint work on tokenisation after a visit by BoE deputy governor Sarah Breeden.
Sarah Breeden, deputy governor for financial stability at the Bank of England, travelled to Seoul and held talks with the Bank of Korea on Monday. The meeting focused on advances in payment and settlement innovation, with both institutions reviewing tokenisation projects such as the international Project Agora, coordinated by the Bank for International Settlements, and South Korea’s domestic Project Hangang, a blockchain-based pilot testing digital and wholesale central bank money.
The BOK announced it will actively contribute its own tokenisation experience and engage in worldwide forums on the topic. Tokenisation replaces sensitive payment data with randomised tokens, enhancing security for cross-border transactions. These collaborations aim to improve the global financial system and explore new forms of digital currency.
Why it matters
Coordinated tokenisation efforts could boost security and efficiency of international payments and shape future digital currencies.
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