Bank of Korea to Pilot Digital Currency with 100,000 Citizens in Late 2024
Summary:
The Bank of Korea (BOK) plans to let 100,000 citizens test its central bank digital currency (CBDC) by using deposit tokens for purchases. Initiated in late 2024, the three-month pilot program will test the feasibility of issuing and circulating the currency. The BOK is also partnering with the Korea Exchange to experiment with integrating its CBDC into a carbon emissions trading simulation system, aiming to test delivery versus payment transactions.
In an attempt to run a pilot program on its central bank digital currency (CBDC), the Bank of Korea (BOK) has announced its plans to allow 100,000 Korean citizens to use deposit tokens for shopping. The exploration is anticipated to begin roughly around the months of September to October in 2024 and will span across three months. As reported by the Korea Times on 23rd November, the use of CBDC by participants will be limited to transactions, excluding options for storing, trading, or transferring to other users. The pilot scheme aims to examine the practicality and efficiency of circulating the digital currency. In its attempt to integrate the new digital medium of exchange into a carbon emissions trading simulation program, BOK will form a partnership with the Korea Exchange. This is to validate whether a delivery versus payment transaction is plausible. The BOK confirmed via a statement published in the newspaper that the developmental phase will commence first in the final quarter of 2024. The potential for independent pilot initiatives will also be reviewed if banks put forth fresh individual projects. Alongside the BOK's disclosure, Agustin Carstens, the general manager of the Bank for International Settlements (BIS), made a trip to Seoul, where he openly dubbed the Korean CBDC project as the “digital Won.” The BOK heralded the initiation of the CBDC pilot in the month of October. This pilot, which will test retail and wholesale CBDCs, will incorporate private banks and public institutions while benefiting from the technical expertise provided by the BIS. The BIS is currently pioneering in the global adoption of CBDC, actively assisting the Swiss National Bank in the development of a wholesale CBDC. It is also aiding in the creation of a joint platform with the central banking authorities of China, Hong Kong, Thailand, and the United Arab Emirates, and developing a prototype for a transaction tracking scheme with the European Central Bank, among various other endeavors.
Published At
11/23/2023 9:06:24 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.