CB of South Korea Launched a Pilot Testing of Digital Currency

Central bank of South Korea has announced about the launch of pilot testing program of digital Won. Testing process will last till December 2021.

CB of South Korea Launched a Pilot Testing of Digital Currency
CB of South Korea Launched a Pilot Testing of Digital Currency

During 22-month program they plan to determine technical and regulatory provisions, necessary for digital currency creation & launch. In addition, design of CB digital currency (CBDC), working method and blockchain background, that will be used for digital Won launch, will be created. Also, the regulatory obstacles to issuing state cryptocurrency will be analysed.

Wherein, South Korean central bank has stressed that even after completion of the pilot program, CB cryptocurrency will not necessarily be run, moreover, demand for cash is still very high. However, country`s regulator should “correctly react” at changes in payment sector.

The pilot program will be divided to 4 parts: definition of requirements for creating a CB digital currency, technologies` research, analysis and consulting on business process, creation & testing state cryptocurrency pilot system. The last stage will take the largest period — 12 months.

Late in December 2019 they informed that central bank of the country planned to study opportunities of state cryptocurrency and their perspectives. At the same time, according to representatives of the Bank for International Settlements (BIS), the coronavirus pandemic can significantly contribute to the creation of cryptocurrencies of CB.

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