South Korea’s Central Bank Start Testing of Digital Currency
Instant Glance
- For a testing digital currency, the Bank of Korea has inaugurated a pilot program
- In order to check technical and legal requirements, the program is expected to run till December 2021
- Particularly, the Bank of Korea reported, “it is not necessary to issue CBDC in the near future” as the demand for cash still prevails
For testing digital WON, the country’s central bank, Bank of Korea has inaugurated a pilot program.
Monday, the central bank announced news stating that the program was undertaken last month expecting to run until December 2021. The 22-month program is intended to specify technical and legal provisions employed to develop as well as publish a digital currency.
A technical way suggests that central bank digital currency (CBDC) design, and operation method of CBDC, and whether blockchain technology may get feasible to execute.
When CBDC came to existence it was capable to analyze legal issues. And also was a firm to create an amendment plan for the Bank of Korea Act.
Piolet program calendar outline is sketched as follows:
- CBDC design and requirements definition: 5 months (March 2020 – July 2020)
- Technology review: 5 months (April 2020 – August 2020)
- Business process analysis and consulting: 4 months (September 2020 – December 2020)
- CBDC pilot system construction and testing: 12 months (January 2021 – December 2021)
“It is not necessary to issue CBDC in the near future” worthy stated by the Bank of Korea. The reason behind this was to urge for cash to still exist, with another factor. It should be clearly reported”promptly” for changes in the future in the payments sector.
In December 2019 Bank of Korea credited to conduct CBDC research. In order to examine CBDCs and to analyze other countries’ digital currency initiatives, the central bank rented experts.
Central banks across the world quickened their digital currency research efforts. In reference to check out the integration of digital euro in payment procedure the central bank of France also undertook an endeavored.
Physical cash may be a vector and disease would circulate, and this would stimulate a craving for digital methods like CBDCs.
Recently BIS confessed that “Resilient and accessible central bank operated payment infrastructures could quickly become more prominent, including retail central bank digital currencies (CBDCs)”.
