South Korea’s central bank took another step toward developing a central bank digital currency (CBDC) with plans to build a pilot platform, according to a report.
- The Bank of Korea (BOK) said it intends to select a technology supplier through an open bidding process to research the practicalities of a CBDC, Reuters reported Monday.
- The test will run from August to December and involve simulations of banks and retailers, and include mobile-phone payments, funds transfers and deposits.
- BOK’s research into the issuance of a CBDC was published in February, and determined that it could be treated as fiat currency, not a crypto asset, and could therefore be exchanged freely with cash.
- In March, Seoul-based Shinhan Bank said it had built a blockchain-based pilot platform for a potential South Korean CBDC, which would involve intermediaries such as Shinhan to distribute the digital won to consumers.
- Central banks of numerous major economies have announced intentions to research and develop CBDCs in recent months. China is leading the way, with a digital yuan being rolled out to consumers following trials in late 2020.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.