Last week, on October 4th, the Bank of Korea unveiled its plans to initiate a usability test for Central Bank Digital Currency (CBDC), marking the initial stride toward constructing the future monetary infrastructure. This test is a collaborative effort involving the Bank of Korea, the Financial Services Commission, the Financial Supervisory Service, as well as several banks.
The primary focus of this test will be on Wholesale CBDC, intended for facilitating money transactions and concluding settlements among financial institutions. Participating banks will furnish tokenized deposits accessible to the public within the ‘CBDC network’ established by the Bank of Korea through the use of distributed ledger technology. These deposits will circulate securely within the newly established monetary framework.
Anticipated outcomes of this test include paving the way for the implementation of innovative payment and financial services distinct from existing ones. It will also provide an opportunity for the general public to engage in limited testing of selected use cases, allowing them to experience the advantages of these new digital payment methods.
Furthermore, the Bank for International Settlements (BIS) has actively shared its research and development expertise on future monetary systems, including CBDCs. This test serves as a crucial step in the exploration of the most suitable CBDC design model for our financial and economic circumstances.
The process of selecting companies to develop the system has been initiated, and additional information can be found on the g2b.go.kr portal.
Source : http://www.fsc.go.kr:8300/v/prvtpujIeCb