Bank of Korea to launch final CBDC testing in 2021

Bank of Korea to launch final CBDC testing in 2021
CONTENT

  • Bank of Korea to begin final testing of token distribution system next year

  • The first phase of testing ended in July

  • The central bank has no plans to launch a digital won as such

Bank of Korea to launch final CBDC testing in 2021

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After completing the first phase of testing its digital currency, the Bank of Korea plans to begin the final test of the token distribution system next year..

Despite ongoing experimentation with the central bank’s digital currency (CBDC), South Korea’s central bank has no plans to launch a sovereign digital currency. As the digital yuan pilot progresses in China, other countries in the Asia-Pacific region and countries outside Asia have begun to delve deeper into CBDC research. As of … More.

According to the South Korean daily The Korea Herald, the central bank plans to launch a test distribution of its experimental digital won in 2021. We will remind, in June, the editorial staff of BeInCrypto reported that the Central Bank of South Korea instructed a special group to study the industry and give recommendations on legislation or amendments necessary to ensure the functioning of the CBDC..

Bank of Korea to launch final CBDC testing in 2021

According to South Korea’s plan, testing the token distribution system will be the final phase of a three-stage process. Phase 1, design development and baseline technology audit completed in July.

Before launching the final stage, the Bank of Korea will analyze the processes involved in the CBDC infrastructure, and this stage is likely to require the participation of independent consultants. In July, the central bank appointed a six-member ad hoc legal advisory group comprised of three professors, two lawyers and one Bank of Korea employee..

As part of the final phase, the bank will monitor the process of circulation of tokens and transactions with digital won through blockchain technology.

At the same time, the regulator emphasizes that experiments with CBDC do not imply the launch of a sovereign digital currency into circulation, although this summer the monetary authorities of South Korea unveiled a 10-year development plan focused on blockchain and CBDC..

Bank of Korea to launch final CBDC testing in 2021

In May, the government pledged $ 400 million to research and develop distributed ledger technology. Then this decision was interpreted as an attempt to keep up with China’s progress in this direction..

Meanwhile, South Korea’s digital currency-based electronic payment system (DCEP) continues to gain traction. DCEP, which is already in use nationwide, crossed the 3 million mark in August for over $ 160 million.

 

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