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A CBDC pilot to be launched in South Korea

South Korea’s central bank needs a technology supplier to help with the creation of a pilot platform for its CBDC
south korea

South Korea’s central bank needs a technology supplier to help with the creation of a pilot platform for its CBDC.

Asia is certainly one step ahead when it comes to Central Banks Digital Currencies. For example, Cambodia, China, and Thailand are already testing them. Seoul has declared earlier this year that the country might be able to start its pilot phase for a CBDC in the following months.

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The technology supplier that will be needed to contribute to the implementation of a digital won will be selected through an open bidding process. The testing stage is expected to begin in August and last until December.

During this period, simulations with banks and retailers will be made. They will include payments, transactions, and deposits. The pilot project could be extended into another phase in 2022 if everything turns out according to the plan.

“The share of cash transactions are decreasing significantly. The steps we are taking now are to prepare for the changes in the payment settlement system, changing rapidly.”

A spokesman of the BOK declared

Other countries are also contemplating a digital currency linked to traditional money. The National Bank of Georgia also announced earlier this month that it is thinking of launching its own CBDC. The bank believes that this move towards crypto will make the payment service more efficient through new technologies.

The deputy governor of the Bank of England also declared in May that the issuing of a central bank digital currency in the future can turn into reality if public money will outlive private replacements. In fact, the launching of CBDC would help in the increasing skepticism of people towards the public currency.

“The knowledge that under stress depositors have the option to switch into state money may be important in preventing a more general loss of confidence in money.”

Sir Jon Cunliffe, the deputy governor of the Bank of England
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