South Korea Launches CBDC Platform In Pilot Mode

The Central Bank of South Korea has announced the launch of a pilot CBDC program. The tests will include simulating a commercial banking environment and operations such as opening accounts and depositing funds. The bank also announced that it will continue to pursue mobile payments and is looking for a partner institution to participate in the digital currency testing phase. The technology provider must be selected through a public tender process.

The Bank of Korea has said it is preparing for the inevitable changes in the payments industry. Reducing the use of cash to process payments is seen as one of the biggest changes, according to a Bank of Korea spokesman. The first phase of the pilot is expected to begin in the third quarter and run through the end of the year.

Digital currencies are gaining popularity in many countries around the world as the respective central banks seek alternative and complementary cash systems. Last month, the Bank of Japan announced the start of CBDC trials that will run until next March. The experiments are designed to test the practical use of the digital yen.

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