The central bank of Korea announces the testing of CBDC (central bank digital currency) distribution in December 2021. The pilot program for digital currency consists of three phases, claims the Bank of Korea.
As per local news agency Korea Herald, the 2-year CBDC pilot program is launched by the Korean central bank for the distribution of digital currency. However, it is not confirmed that it will launch CBDC for public use as the bank is only checking the feasibility of it.
According to the official announcement of BOK, blockchain technology will be employed by the bank for keeping transactional data of digital currency.
22-Months Pilot Program
The 22-months pilot program will go through three steps while the first phase is already completed. In the first phase, BOK launched comprehensive research and also designed the framework for central bank digital currency and it ended in July. The second phase is dedicated to the consultation of third parties while analyzing the scope of digital currency. In the third phase, the Bank of Korea will launch the testing of CBDC’s distribution.
Unlike many other central banks, the central bank of Korea does not have a complete stance over the launching of state digital currency for citizens. According to reports, the government of Korea has dedicated almost $400 million for the development and growth of blockchain. The government has funded to accelerate blockchain growth after the Chinese president provided a green signal for blockchain.
China’s Progress in CBDC Development
On the other hand, the People’s Bank of China clearly demonstrated that it would launch digital yuan for public usage as soon as possible. For this, they launched a research program many years ago. Now, they are in the completion stage of the development of digital yuan. According to reports, the People’s Bank of China has utilized $162 million for pilot transactions. Since last year, China has launched many pilot programs in major cities such as Xiongan and Shenzhen.
Recently, the Bank of Canada rolled out a report discussing the security risks attached to a central bank digital currency.