TechFlow news: Hanwha Bank plans to research certificate of deposit (CD) tokens as part of its participation in the central bank's digital currency project concept validation (PoC) process. PoC is a procedure for verifying new technologies, and Hanwha Bank's move signals its interest in the central bank's blockchain-based currency system. Other commercial banks have also expressed interest in CD tokens, with Woori Bank recently releasing a report related to CD tokens.
CD tokens represent the tokenization of bank deposits using blockchain technology, and their potential as a stablecoin has drawn increasing attention. Aligned with bank account settlement payments, CD tokens are expected to replace current payment methods.
Growing interest in CD tokens primarily stems from their reliability as an alternative to stablecoins.
Unlike other stablecoins, CD tokens operate on existing banking systems, require identity verification, and settle through central bank digital currency (CBDC), making them perceived as more reliable.
