South Korean Central Bank Announced The Completion Of The First Phase Of Its CBDC Simulated Testing.

The first part of the South Korean central bank’s CBDC simulated testing was finished in December 2021, and the second round is presently ongoing.

According to YNA news, the South Korean central bank finished the first part of its CBDC simulated testing in December, and the second phase is presently happening. The first part of the mock test focused on some of the fundamental operations of the sovereign digital currency, such as distribution and issuance.

The CBDC pilot’s second phase would put real-world features like cross-border remittance, retail payments, and offline payments to the test. According to the bank:

“We will confirm the possibility of operating various functions, such as offline settlements, and the application of new technologies, such as one intended to strengthen privacy protection during the second phase of the test.”

Bank of Korea (BOK) is also aiming to bring in financial institutions for the second phase, much like China is doing with its digital yuan. Unlike in China, however, BOK-issued digital currency would prioritize user privacy.

The second phase is scheduled to be completed by June 2022, following which the central bank will develop an official launch and commercialization strategy.

South Korea has now joined the limited club of countries that have either begun or finished the pilot phase of CBDC testing. According to data from the Atlantic Council, 91 countries are now working on their national digital currency, with just 14 countries having reached the pilot stage.

South Korea has lately disclosed aspirations to become a world leader in the metaverse, after becoming one of the leading crypto-compliant nations in recent years. While China is now at the forefront of the CBDC game, several European and Asian competitors have emerged.

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Patrick

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