The Bank of Korea finished its first-phase review before setting up the CBDC pilot system. The central bank plans to unveil details for a consulting partnership with a local company, as part of its second step toward the CBDC drive, as per The Korea Times report. Those interested in partnering up for the project can submit an application form to the Bank of Korea. The central bank did not share specifics over when it would make its selection.
The partner will help the central bank establish a CBDC system.
According to the report, a potential partner will help the BOK establish a CBDC system architecture based on the first-phase research results under the second-phase project. Architecture refers to the overall CBDC system structure, including details such as applications, data management, and security. The central bank plans to speed up the establishment of the CBDC pilot system by using the architecture. The central bank of South Korea is set to begin the pilot test of its own CBDC system by the end of the next year. The latest move is part of South Korea’s central bank drive to join the global banking trend toward digital currency. Fresher jobs in the crypto sectors have also increased.
Central banks across countries are exploring digital currencies.
Major economic powerhouses including the United States and China are enhancing their research to possibly issue their own 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.
The PBoC is currently conducting trials of its national digital currency in several cities and is all set to launch soon. The central bank had earlier mentioned that it was only testing DCEP for small retail transactions.