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South Korea’s Central Bank to Choose Supplier for Digital Currency Pilot
The Bank of Korea is looking for a technology supplier to explore a digital currency in a test environment.
Por Jamie Crawley
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.
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- 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.
See also: Card-Based Digital Yuan Wallet Manufacturer to Use Fingerprint ID Tech
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