South Korea’s central bank is taking its CBDC development to the next stage – a report by Sahil Kohli.

South Korea's push for a central bank digital currency is advancing to the next stage as the country's central bank seeks to start a pilot project.

The central bank of South Korea is taking the development of its CBDC to the next stage as the central bank seeks to start a pilot project. The Bank of Korea (BOK) is now seeking a firm to partner with on the CBDC’s second phase, which involves building the digital currency infrastructure. The central bank had recently concluded its first phase in its CBDC development journey, which involved extensive research regarding the CBDC’s feasibility.

 

Bank of Korea focusing on the development of infrastructure of its CBDC. 

BOK recently concluded its first phase in its CBDC development journey, which involved extensive research regarding a digital won’s feasibility. The central bank is now embarking on developing the digital currency’s infrastructure, including its issuance and distribution, applications, security, and data management. The Bank of Korea is looking for a consulting firm to partner with for the new phase, according to an announcement on its site. Interested companies can submit their applications to the bank. 

An official from the central bank told local English paper The Korea Times that they will team up with a consulting partner to map out the overall work process and architecture to operate the digital currency system. 

 

Central banks across countries continue to explore CBDCs.  

The United States and China are enhancing their research to possibly issue their own national digital currencies with the rise of non-face-to-face transactions. As reported earlier, the Bank for International Settlements report revealed that in 2020, worldwide internet searches for CBDCs surpassed searches for Bitcoin BTC and Facebook’s Libra. Central banks of many countries are actively working on their CBDCs while some are exploring the potential benefits of having a CBDC, reported Sahil Kohli. The People’s Bank of China is currently conducting trials of its national digital currency in several cities and is all set to launch soon. The bank had earlier mentioned that it was only testing DCEP for small retail transactions.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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