Home Cryptocurrency Bank of Korea To Conduct A Pilot Test For Digital Currency

Bank of Korea To Conduct A Pilot Test For Digital Currency

  • The Bank of Korea (BOK) announced today that it was readapting the strategy for the potential issuance of a central bank digital currency (CBDC).
  • The initial phase consists of structuring the requirements and frame of CBDC, this will run for five months until July 2020.
  • This program initiated in March and is expected to process for 22 months until December 2021.

The Bank of Korea (BOK) announced today that it was readopting the strategy for the potential issuance of a central bank digital currency (CBDC).

Though the bank has no such immediate plan to launch a currency, the pilot project is to ensure that it is ready to do so due to the changing market scenario. This scheme is in line with similar steps adopted by other developed countries like the United States and Japan.

The pilot will include technical as well as legal review

Followed by a theoretic study conducted in February 2020, the program will include technical as well as a legal review of CBCD issuance.  This program is initiated in March and is expected to process for 22 months until December 2021.

The initial phase consists of structuring the requirements and design of CBDC, this will run for five months until July 2020. Due to this, there will be a review of technology which is essential for the implementation of the currency and is planned from April until August.

The BOK had taken an interval to look at the stance over digital currency experiments. The so thought came as the digital form of fiat money is still influencing users, with the concerns at BOK whether the issuance of digital currency could make its authority powerless and may weaken the financial system of the country.

Release of digital currency in South Korea

The announcement made a clear statement that the bank is not willing to release a digital currency immediately in South Korea.

One of the officials from BOK said that though the U.S. and Japan had no recent plans to issue a CBDC in the coming future, they changed their mindset recently to develop their research in the emerging system.

The BOK also decides to be proactive in the highly fluctuating payment environment in the country as well as overseas. That is why the BOK is introducing a pilot system to check the technical as well as legal issues which will affect its introduction.

China is the most active player in implementing the CBDC. The People’s Bank of China recently revealed that the development of CBDC was its prime priority.

Download our App for getting faster updates at your fingertips.

en badge web generic.b07819ff

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.

We Recommend

Top Rated Trading Platforms

Top Rated Cryptocurrency Exchange

Partners

Must Read

Utilizing blockchain to screen the COVID-19 vaccine supply chain

Blockchain offers a changeless, decentralized information base that can enable all gatherings to ensure that antibody supplies are being put away and...

Leaked Citibank details Reveals Bitcoin Could Rocket To $300,000 Price By End Of 2021

Bitcoin has detonated in the most recent couple of weeks, adding to increases through 2020 that is seen more than twofold in...

Airbnb plays blockchain popular expression bingo in $ 1B IPO documenting with SEC

Crypto firms are genuinely attempting to restore the gravely hit travel area utilizing conveyed record innovation. The record rolls out an elite of...

The Cryptocurrency Mining Equipment market is skyrocketing

Stratagem Market Insights added an overview of the Cryptocurrency Mining Equipment MarketThe insider report covers various aspectsDifferent methodology to study the competitive...

Bitcoin Cash Under Pressure Slips -0.95% After Split Into Two Blockchains While BCHA Emerges as Positive Performer

Bitcoin Cash builds the Symmetrical triangle pattern, on daily chart faced rejection from the resistance and bounces from the support line  The pair...

What is the Next Move of Ethereum Retracing From Resistance of $495.00?

Ethereum consolidating between the range of $445 to $490 after making a new 52-week high of $492 trading at the mark of...

Related News

Digital change is essential however we don’t uphold private cryptocurrencies- German Finance Minister

Germany's Finance Minister Olaf Scholz has referenced secretly given cryptocurrencies resources.The European Union (EU), including Germany, is quickening innovative work on the...

Airbnb plays blockchain popular expression bingo in $ 1B IPO documenting with SEC

Crypto firms are genuinely attempting to restore the gravely hit travel area utilizing conveyed record innovation. The record rolls out an elite of...

The Cryptocurrency Mining Equipment market is skyrocketing

Stratagem Market Insights added an overview of the Cryptocurrency Mining Equipment MarketThe insider report covers various aspectsDifferent methodology to study the competitive...

Brazilian Indigenous Tribes Neglected by the Government

Jair Bolsonaro, The President of Brazil, is known for looking down on its indigenous people. He is racist and discriminative towards themHe...

ZebPay to Dispatch India’s non-fungible Crypto Token and Commercial Center

A non-fungible token (NFT) is a cryptographic symbolic that speaks to something exceptional and has singular qualities that set them apart. The distinction...