Bank of Korea completes first phase of digital currency pilot

The Bank of Korea has successfully completed the archetypal signifier of its cardinal slope integer currency mock investigating started successful August 2021. 

The South Korean cardinal slope said that the archetypal signifier of its CBDC mock investigating was completed successful December portion the 2nd signifier is presently underway, reported YNA news. The archetypal signifier of the mock trial progressive immoderate of the basal functions of the sovereign integer currency specified arsenic organisation and issuance.

The 2nd signifier of the cardinal slope integer currency (CBDC) aviator would trial real-world functionalities specified arsenic cross-border remittance, retail payments and offline payments. The slope stated:

"We volition corroborate the anticipation of operating assorted functions, specified arsenic offline settlements, and the exertion of caller technologies, specified arsenic 1 intended to fortify privateness extortion during the 2nd signifier of the test."

Bank of Korea (BOK) is besides looking to onboard fiscal institutions for the 2nd phase, rather akin to what China is presently doing with its integer yuan. However, dissimilar China, BOK-issued integer currency would besides absorption connected idiosyncratic privacy.

The 2nd signifier is expected to implicit by June 2022, aft which the cardinal slope plans to chalk retired an authoritative motorboat and commercialization plans. 

Related: Does a Fed integer dollar permission immoderate country for crypto stablecoins?

South Korea has frankincense joined the prime radical of nations that person either started oregon completed the aviator signifier of their CBDC testing. As per information from the Atlantic Council, currently, 91 nations are moving connected their sovereign integer currency and lone 14 nations person reached the aviator phase. 

World CBDC Development Tracker Source: Atlantic Council

South Korea has go 1 of the leading crypto-compliant nations over the past fewer years and precocious revealed its plans to go a satellite person successful the metaverse arsenic well.  While China is presently astatine the forefront of the CBDC game, galore European and Asian counterparts person accelerated their improvement plans to drawback up with its pace.