South Korean central bank to launch CBDC pilot in 2024

The Bank of Korea (BOK) has unveiled plans for a aviator programme to trial its caller cardinal slope integer currency (CBDC), according to section media reports.

The programme volition beryllium conducted successful collaboration with the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) and is expected to motorboat successful 2024.

The announcement follows a gathering betwixt the BOK Governor Rhee Chang-yong and Bank for International Settlements General Manager Agustin Carstens, underscoring the planetary involvement successful integer currency innovation.

Carstens praised the inaugural arsenic a forward-looking attack to the aboriginal of monetary systems, referring to the task arsenic the “digital Won.”

CBDC Pilot

The programme volition let 100,000 Koreans to usage deposit tokens based connected the “digital Won” CBDC, marking a important measurement successful integrating integer currencies into mundane transactions successful the country.

The CBDC, a integer signifier of wealth backed by a cardinal bank, aims to streamline fiscal transactions and code challenges successful existent systems, specified arsenic precocious transaction fees and dilatory colony processes.

Participants successful the aviator programme volition beryllium capable to acquisition goods utilizing deposit tokens issued by commercialized banks, akin to vouchers. The recruitment of participants by selected banks is expected to instrumentality spot betwixt September 2024 and October 2024, with the task moving for 3 months.

The BOK emphasized the imaginable benefits of integer currencies, particularly successful improving ratio and information successful fiscal transactions. This includes peculiar applications similar authorities grants, wherever existent systems look hurdles similar post-transaction verification and fraud risks.

However, utilizing these integer currencies volition beryllium constricted to designated outgo purposes during the aviator phase, with restrictions connected idiosyncratic remittance and different uses.

Additional pilots likely

The BOK is besides exploring the integration of CBDC successful a simulated c emissions trading strategy successful concern with the Korea Exchange. This experimentation volition trial the viability of transactions involving c emissions rights and outgo tokens.

Looking forward, the BOK plans to behaviour the aviator successful the 4th fourth of 2024, with possibilities for further abstracted pilots based connected proposals from banks.

This inaugural places South Korea astatine the forefront of integer currency integration, perchance mounting a benchmark for different nations successful the aboriginal of fiscal transactions.

The station South Korean cardinal slope to motorboat CBDC aviator successful 2024 appeared archetypal connected CryptoSlate.