Major crypto journalism sites have just reported that South Korea is joining the CBDC race. Bank of Korea will now launch a pilot project.
This project treats the technical infrastructure for a digital currency. It is targeted at private and public banking institutions nationwide, while the Bank for International Settlements (BIS) will support it with technical expertise.
The collaborative declaration of the CBDC pilot project involving the Bank of Korea (BOK), the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS) was officially released on October 4. As outlined in the document, the primary objective of this initiative is to evaluate the potential feasibility of a forthcoming monetary system built upon the foundation of “wholesale CBDCs.”
The pilot program will involve both private banks and public institutions, with technical assistance from the Bank for International Settlements (BIS). The Bank of Korea (BOK) plans to examine two kinds of CBDCs for regular folks and businesses. In the more advanced test involving businesses, banks will convert their funds into digital tokens and use them in a controlled system overseen by the BOK, FSC, and FSS. Real-world trials of the regular folks’ CBDC are scheduled to start shortly after setting up the system in the fourth quarter of 2024.
Usually, for CBDC tests, the BOK notes that exploring doesn’t equal the inevitable implementation. However, Lee Myung-soon, FSS’s First Deputy Governor, has something to say about the pilot being a step toward the global future monetary system.
“The BOK has persistently pursued technological research related to CBDC. This test, building upon past achievements, represents a significant step towards creating a prototype for the future monetary system.”
These words are similar to a sentiment expressed by a top executive at France’s Central Bank on September 3. Denis Beau, who serves as the first deputy governor at Banque de France, described CBDC as a “catalyst for enhancing international money transfers and creating a new global monetary system.”
Bank of Korea (BOK) is South Korea’s main bank. BOK is one of the leading active participants in global crypto affairs and digital assets. They are now working with international-related bodies to see if CBDC would be a good idea.
The People’s Bank of China (PBOC), Sweden’s Central Bank, and the Bahamas are already leading in the course. We would hope for a successful campaign for BOK for this reason.
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