South Korea’s Central Bank to Test Digital Currency With Banks in 2021
The Bank of Korea (BoK) is to run trials of a central bank digital currency (CBDC) through next year, the institution announced Wednesday.
- As reported by The Korea Herald, the move follows the progress of research to the technical phase in the summer and will see testing of distribution and circulation of the digital coin.
- With China fast moving toward the launch of its CDBC and having already held tests across the nation assisted by banks and firms, South Korea moved to accelerate its work on a CBDC in April.
- While the BoK reportedly said the tests do not necessarily mean it will go ahead with the CBDC launch, they would be the final stage of the development.
- Indeed, the central bank has been moving quickly. Phase one – designing and reviewing the technology – was completed in several months and phase two – looking at the likely infrastructure with an outside partner – started at the end of August.
- As with China’s digital yuan tests, the BoK will test the blockchain-based CBDC with partner banks to test the circulation process, said The Herald.
- In June, the central bank formed a legal committee to advise on the possible launch of the digital currency.