Central Bank of South Korea launched a pilot test of digital currency

The Bank of South Korea announced the launch of a pilot program to test the digital won. Testingwill last until December 2021.

During the 22-month program is plannedDefine the technical and regulatory provisions necessary to create and issue a digital currency. The design of the central bank’s digital currency (CBDC), the method of operation, and on the basis of which blockchain the digital won will be issued will also be determined. The regulatory obstacles to issuing state cryptocurrency will also be analyzed.

At the same time, the Central Bank of South Korea emphasized that evenAfter the completion of the pilot program, the cryptocurrency of the Central Bank will not necessarily be launched, especially since the demand for cash remains high. However, the country's regulator needs to “respond correctly” to changes in the payment sector.

The pilot program will be divided into four stages: determining requirements for creating a digital currency of the Central Bank, researching technologies, analyzing and consulting on business processes, and creating and testing a pilot system of state cryptocurrency. It is at the last stage that the most time is allotted - 12 months.

Back in December last year, it was reported that the Central Bankcountries plans to explore the possibilities of state cryptocurrencies and their prospects. At the same time, according to representatives of the Bank for International Settlements (BIS), the coronavirus pandemic can significantly contribute to the creation of cryptocurrencies by the Central Bank.

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