The Bank of Korea is planning to conduct pilot tests of a central bank digital currency involving 100,000 participants in the fourth quarter of 2024, This pilot program will use public vouchers to simulate real-world transactions.
Key Takeaways
- The Bank of Korea (BOK) plans to conduct pilot tests of a central bank digital currency (CBDC) in Q4 2024, involving 100,000 participants.
- The trial will use public vouchers to simulate real-world transactions, addressing inefficiencies in existing financial systems highlighted during the COVID-19 pandemic.
- Agustin Carstens, General Manager of the Bank for International Settlements (BIS), commends South Korea’s approach to CBDCs.
- South Korea aims to integrate CBDC into a distributed ledger system for carbon credit trading and assess legal considerations in payment token usage.
South Korea’s CBDC Pilot Test
The Bank of Korea (BOK) is set to embark on a groundbreaking pilot test of a central bank digital currency (CBDC) in Q4 2024, involving a substantial 100,000 participants.
This innovative trial will employ public vouchers to simulate real-world transactions, with the goal of addressing inefficiencies in the country’s existing financial systems. It draws inspiration from voucher-based programs during the COVID-19 pandemic and childcare support initiatives.
Global Recognition and Commendation
Agustin Carstens, General Manager of the Bank for International Settlements (BIS), has praised South Korea’s forward-thinking approach to CBDCs during a recent seminar.
He emphasized the importance of central bank leadership and called for the development of programmable wholesale CBDCs and asset tokenization.
The BOK has been conducting CBDC tests since August 2021, and these efforts are set to expand further by year-end.
🇰🇷 South Korea's #BankOfKorea to launch a #CBDC pilot with 100K participants in 2024! 🚀 Citizens will test the digital won's use for payments in a groundbreaking 3-month trial.https://t.co/qOhFRqD2tW#DigitalCurrency #FinTech pic.twitter.com/Zq3GWI3zji
— Moonhub (@moonhub_) November 23, 2023
To Conclude
South Korea’s forthcoming pilot test of a CBDC with a substantial user base reflects the nation’s commitment to staying at the forefront of digital currency innovation.
With global recognition and commendation from BIS’s Agustin Carstens, South Korea’s efforts to address financial system inefficiencies through CBDCs are poised to make a significant impact.
