The Central Bank of South Korea (BoK) is getting one step closer to developing a central bank digital currency, preparing to launch its pilot platform.
According to a Reuters report, BoK will conduct tests simulating internal banking transactions such as opening a savings account and transferring funds. It will also focus on mobile payment transactions. South Korea’s central bank is currently looking for a partner to test the digital won.
In March, Seoul-based Shinhan Bank created a pilot platform for CBDC. However, it is unclear whether the central bank will choose to distribute it through intermediaries. BOK also published a research report on the legal issues surrounding CBDCs in February.
Preparing for Changes
A central bank official claims a significant decrease in cash payments. So he claims that there is a need for quick changes when it comes to payments and configurations:
“The steps we are taking now are to prepare for the rapidly changing changes in the payment settlement system.”
While countries like China and Sweden are already testing with CBDCs, the Fed is preparing to publish a research report on the digital dollar this summer.