The central bank of Korea is now finally stepping ahead to test the pilot program for the possibility of a CBDC regulatory system. While the crypto industry is recovering from the recent crash, at the same time, Korea is moving along to test and launch the Korean central bank digital currency (CBDC). On the 24th of May 2021, this interesting news spread out in the market via Korea Herald that officials of the Bank of Korea (BOK) are now working on to practically inculcate CBDC to test, evaluate and control the particular virtual asset required to digitize the fiat currency.
As the world is transforming the payment and financial system into digital ways, China is also planning to roll out the digital Yuan and is expected to launch it by the end of this year. While on the other hand, recently, South Korea also publically disclosed that its central bank is also planning to carve out its digital currency to cope with a payment solution and to keep it updated with the global technology.
In April 2021, the Bank of Korea (BOK) suggested the financial authorities test the proposed pilot program to test and launch the central bank digital currency (CBDC). The purpose of launching CBDC is to test and evaluate the virtual currency for the sake of remittance and settlement of daily life services and goods.
Korea’s Steady Plan to Launch CBDC
Korea is looking forward to moving with the proposed plan to launch CBDC but with some diligence as it isn’t in any rush as BOK will step ahead into two-step; the first one is theoretical, which is focusing on the different aspects associated with CBDC like legality, compatibility and related pros and cons associated with transactions and security.
The second step is basically the practical implementation that revolves around IRL-based payments, real-time testing of virtual currency, and International transactions. Korea is planning to move along with currency digitalization but with caution to avoid any disaster.
CBDC’s current status in Korea
Right now in South Korea, several leading financial and tech-based corporations are gearing up and excited to work along the CBDC project of the Bank of Korea to update and expand their businesses.
Regarding this stance to prominent companies well known for software technology named Kakao and Naver which manages application related to social networking and messaging are ready to develop blockchain unites and fintech to entertain the Bank Of Korea with good services.