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South Korea to Develop Pilot Platform for CBDC

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Mon, 05/24/2021 - 04:19
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Alex Dovbnya
South Korea is moving to start a pilot program for a digital won
South Korea to Develop Pilot Platform for CBDC
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The Bank of Korea (BOK) is inching closer to developing a central bank digital currency by preparing to launch its pilot platform, Reuters reports.

The BOK will conduct tests that simulate such internal banking operations as opening a savings account and transferring funds. It will also focus on mobile payment transactions.

South Korea’s central bank is currently in search of a partner for testing a digital won.

In March, Seoul-based Shinhan Bank created a pilot platform for the CBDC, but it is unclear whether or not the central bank will choose to distribute it via intermediaries.

In February, the BOK published a research paper on legal issues surrounding CBDCs.

Related
Bank of England and U.K. Treasury Create Digital Currency Task Force

Preparing for changes  

A BOK official claims that payments conducted in cash are experiencing a significant decline.

Hence, he claims that there’s a need for rapid changes when it comes to payments and settlements:   

The steps we are taking now are to prepare for the changes in the payment settlement system, changing rapidly.

Countries like China and Sweden are already trialing their CBDCs while the U.S. Federal Reserve is set to release a research paper on a digital dollar this summer.     

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.