Bank of Korea Launches Pilot Program

Bank of Korea Launches Pilot Program
  • Bank of Korea Launches Pilot Program for its CBDC.
  • A total of $4.4 million allocated for the trial.
  • Deciding about an offer for the pilot program is expected from Samsung.

The Bank of Korea launches a Pilot program for its central bank digital currency (CBDC). But issuing it is a big question

On Monday Korea Herald reported, the offer opened by South Korea’s central bank, the Bank of Korea, to fill the role of technology for its forthcoming Central Bank Digital Currency (CBDC) trail.

Moreover, a total of $4.4 million allocated for the trial. The trial will conduct in two stages through the virtual environment.

From August to December the first stage scheduled to run. And the second stage is scheduled to run in June 2022. The Bank of Korea at present has no idea about issuing its digital currency, highlighted by the bank official.

The bank’s official said, “We are launching the pilot test to see how [a] CBDC could be used as a form of a safe asset when the share of cash transactions declines significantly”. Adding to this, “the necessity to issue its digital currency is not urgent at the moment”

Two stages

Focusing on CBDC’s fundamental functionalities and testing its issuance and circulation, this was the first stage of the trial.

Although, representing the virtual form of a fiat currency of a particular nation uses an electronic record or digital token by a central bank digital currency (CBDC). CBDC issued and regulated by the competent monetary authority of the country.

The second stage of the trial is detailly exploring more aspects of CBDC like cross-border transactions and offline payments. Studying the effectiveness of digital currencies in protecting user privacy will be done by the Bank of Korea.

Moreover, including Naver, Kakao, LG and several tech giants expressed their interest in the central bank’s upcoming trial. Deciding about an offer for the pilot program expected from South Korea’s largest industrial conglomerate, Samsung.

Henceforth, the research about the feasibility of CBDC by central banks and government across the globe, for the past many years.

Accordingly, many of the country a still more cautious about initiating a new form of digital money. But China has already launched a digital yuan, and the Bahamas has already launched its Sand Dollar.

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