Korea’s apex bank has announced the pilot phase for its CBDC. According to a spokesperson, the BOK will begin conducting tests within a controlled environment.
The spokesperson stated that this would ensure the new digital currency’s workability and safety.
“The Bank of Korea is conducting an analysis of operational procedures for a CBDC rollout, and outside consulting is also underway. This year, we’re going to launch a CBDC pilot system in a virtual environment and run tests to verify its functions and safety.”
The BOK has also released a book explaining the use of its CBDC, stated the announcement. The publication will cover relevant legal issues in the country that affect the issuance of the CBDC.
Bank officials have acknowledged the benefit of applying blockchain technology in the creation of a CBDC. A successful implementation will allow a seamless system of peer-to-peer transactions among individuals. It would also eliminate the need for unnecessary delays as transfers would be done within the network.
The announcement claims that digital cash adoption would increase the country’s GDP by at least 3%. It also highlighted reduced maintenance and printing costs as a significant benefit of this digitization. The BOK hopes to increase the efficiency of negative interest rates and currency circulation using this technology.