- Bank of Korea on Wednesday announced a pilot test for the Digital Currency
- Central bank in April has already commented that the country has launched a 22-month long pilot program for testing the potentials and prospects of the Digital Currency
- Korea is vocalizing that the country holds no plan to launch the Digital Currency shortly
Digital Currency is gaining momentum daily. And countries are in a non-verbal race to come up with their Digital Currency before the others. On similar lines, the Bank of Korea on Wednesday announced a pilot test for the Digital Currency. South Korea’s central bank will overlook the pilot run.
The central bank in April has already commented that the country has launched a 22-month long pilot program for testing the potentials and prospects of the Digital Currency. The pilot project is expected to end by December 2021. Bank of Korea already being in the second phase of the project says that the country doesn’t have any plan to launch its Digital Currency. But they are thoroughly testing and developing for the future scenarios when CBDC becomes mainstream around the world.
Phases of the CBDC Development in Korea
As per the reports, the Bank of Korea is planning to complete the development of the project in the three phases. The first phase that ended in July contributed to the designing and checking the requisites of the technology needed for the development. The second phase consists of analyzing the reports and data from the first phase, studying the related processes and seeking outside consulting for significant development. The third and the final phase is the circulation and the distribution phase. At present China is the only country that has been in the final phase for a few months now.
Expectations from the Program
Korea aims to achieve the technical and legal knowledge about the CBDC development from the pilot run. From the technical vantage point, Korea will define the CBDC operation, design and feasibility aspect. This will help them to learn whether the country shall integrate the blockchain technology into their system.
On the legal aspect, Korea will be aiming to develop a legal framework for CBDC. The program will help the country to analyze the tentative legal issues that will arise if and when the government will launch its Digital Currency.
Korea’s Unclearness Towards the CBDC
On one side, Korea is vocalizing that the country holds no plan to launch the Digital Currency shortly. They are supporting their statement with the reason that the demand for the cash still exists at a large scale. But on the other hand, Korea is actively developing the CBDC. Not just Korea, last week, the central bank of France also announced an experimental program that will test the prospects of the CBDC.
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