Bank of Korea Completed Phase One of CBDC Pilot
- Korea’s central bank concluded that the CBDC “works normally” under test conditions, but more experiments were needed to confirm its viability in the real world.
- The second phase will focus on cross-border remittance and retail and offline payments, and is expected to finish by June 2022.
Seoul, South Korea – April 10 2019 : Bank of Korea (located in Sejong-daero, Jung-gu, Seoul)
Nabi Rang / Shutterstock
The Bank of Korea has successfully completed phase one of its Central Bank Digital Currency (CBDC) pilot project, which started back in August 2021, the Yonhap News Agency (YNA) reported on 24 January.
According to the publication, the first phase of the pilot project tested the basic functions of a CBDC — such as manufacturing, issuing, and distribution — in a simulated environment, and was completed in December 2021. Korea’s central bank said in a statement that the CBDC “works normally” under test conditions, but more experiments were needed to confirm its viability in a real environment.
The bank further stated that based on the results from phase one, it is now considering implementing more functions into the CBDC, such as offline payments, and more personal information protection technologies.
It was also revealed that the second phase of the pilot is already underway, and would focus more on real-world functionalities such as cross-border remittance, retail and offline payments. The bank is now looking to onboard financial institutions to test the CBDC in phase two, which is expected to complete by June 2022, and then create an official launch and commercialization plan.
While China remains on the forefront of CBDC development — and is already testing its e-CNY on a large scale through a WeChat integration — more and more countries are exploring the digital asset. Earlier this month the central bank of Switzerland completed phase two of its “Project Helvetia” — the country’s CBDC pilot — while Jamaica is already looking to roll out its digital currency on a national level sometime in Q1 2022.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.
- Planned for 1 April, the CBDC trial will involve real consumers and real transactions, though they will be limited to a certain number of customers and transfers.
- The pilot, however, will not be opened to the general public in its first phase, and will only be opened to customers chosen by the 13 participating local banks.