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.
Alex DovbnyaPreparing 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.
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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.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team