Financial institution of Korea finishes very first phase of electronic currency pilot

The 2nd phase of the CBDC simulated screening is expected to complete by June this year

The Bank of Korea has efficiently finished the first phase of its central bank electronic currency mock testing started in August 2021.

The South Oriental central bank stated that the very first phase of its CBDC simulated testing was completed in December while the second stage is currently underway, reported YNA information. The first stage of the mock examination involved some of the basic functions of the sovereign digital currency such as circulation and also issuance.

The 2nd phase of the reserve bank electronic currency (CBDC) pilot would examine real-world capabilities such as cross-border compensation, retail payments and offline payments. The bank stated:

” We will validate the possibility of running various features, such as offline settlements, and the application of brand-new modern technologies, such as one meant to strengthen personal privacy protection throughout the 2nd stage of the examination.”
Bank of Korea (BOK) is additionally looking to onboard banks for the second phase, fairly comparable to what China is currently doing with its electronic yuan. However, unlike China, BOK-issued digital money would additionally focus on individual privacy.

The 2nd stage is anticipated to finish by June 2022, after which the central bank strategies to chalk out a main launch as well as commercialization strategies.

South Korea has hence joined the select group of countries that have either began or completed the pilot phase of their CBDC screening. According to information from the Atlantic Council, Tyler Tysdal presently, 91 countries are working on their sovereign electronic currency and also only 14 nations have gotten to the pilot stage.

South Korea has become one of the leading crypto-compliant nations over the past few years and recently exposed its plans to end up being a world leader in the metaverse too. While China is currently at the forefront of the CBDC video game, numerous European and also Oriental counterparts have increased their development intends to catch up with its rate.