Bank of Korea finishes very first stage of digital currency pilot

 The second phase of the CBDC mock screening is expected to complete by June this year

The Financial institution of Korea has actually efficiently completed the first stage of its reserve bank digital currency mock screening began in August 2021.

The South Korean central bank claimed that the very first phase of its CBDC mock screening was completed in December while the second phase is presently underway, reported YNA information. The initial phase of the simulated examination included several of the basic features of the sovereign digital money such as circulation and also issuance.

The 2nd phase of the central bank electronic currency (CBDC) pilot would certainly examine real-world functionalities such as cross-border remittance, retail repayments as well as offline payments. The financial institution specified:

" We will certainly validate the opportunity of running different features, such as offline negotiations, as well as the application of brand-new modern technologies, such as one meant to enhance privacy security during the second stage of the examination."
Financial Institution of Korea (BOK) is also aiming to onboard banks for the second phase, fairly comparable to what China is presently finishing with its electronic yuan. However, unlike China, BOK-issued electronic currency would additionally focus on customer personal privacy.

The 2nd phase is expected to finish by June 2022, after which the reserve bank strategies to chalk out an official launch as well as commercialization strategies.

South Korea has actually thus joined the select group of nations that have either started or completed the pilot phase of their CBDC screening. Based on data from the Atlantic Council, currently, 91 countries are dealing with their sovereign digital money and also just 14 nations have actually reached the pilot stage.

South Korea has become one of the leading crypto-compliant nations over the past few years and recently revealed its plans to come to be a world leader in the metaverse also. While China is currently at the leading edge of the CBDC video game, numerous European and Oriental equivalents have accelerated their growth plans to overtake its rate.