South Korea’s Central Bank to Choose Supplier for Digital Currency Pilot

Interesting news about the Central Bank of Korea published on May 24 at www.coindesk.com

We present the content of the article on our website:

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.