Bank of Korea starts testing digital won

The big lesson from South Korea’s coronavirus response

Central Bank of South Korea announced the launch of a pilot program to test the national digital currency.

The program started in March and will run until December 2021. During these 22 months, the Bank of Korea will study various technical and legal aspects of the digital won..

During the tests, the possible design of the CBDC, how the system works and the prospects for using blockchain technology will be determined. From the legal side, the program will analyze potential legal problems in the implementation of digital currency, as well as develop the necessary legislative changes.

Despite the launch of a pilot program, the announcement said that the Bank of Korea has no plans to issue a digital won anytime soon because, among other things, there is a fairly high demand for cash in the country. However, the regulator wants prepare in advance so that, if necessary, be able to respond quickly to changes in the payment sector.

The prospect of transition to completely digital payment methods is now more relevant than ever. According to research Bank for International Settlements, the possibility of transmitting various infections through banknotes will stimulate the further development of digital currencies.

Bank of Korea starts testing digital won

text: Ivan Malichenko, photo: zenfs

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