South Korea has joined the countries conducting technical research on central bank digital currencies (CBDCs). The South Korean Central Bank announced the launch of its CBDC pilot project. The Bank for International Settlements (BIS) will provide technical support to the CBDC pilot project of the South Korean Central Bank.
South Korea Begins CBDC Research
The increasing global use of digital assets has led to the adoption of blockchain technology and cryptocurrencies. CBDCs (central bank digital currencies) have also been one of the hot topics in the digital asset ecosystem.
While countries have different approaches to CBDCs, many central banks have recently initiated various technical research and pilot projects on CBDCs. The Bank for International Settlements (BIS) completed its CBDC pilot project last week and published a detailed report on the potential benefits and risks of CBDCs.
South Korea has joined the countries conducting technical studies on CBDCs. The South Korean Central Bank announced the launch of its CBDC pilot project through an official announcement. The statement emphasized that no concrete and official step has been taken towards CBDCs yet, and the conducted work will consist only of various tests and research.
The Bank for International Settlements will provide expert technical support to the pilot project. In addition, certain public institutions and private banks will also participate in the work.
South Korean Central Bank Announces CBDC Pilot Project
The South Korean Central Bank, together with the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), made a joint announcement and announced the launch of the CBDC pilot project. The pilot project will evaluate the potential benefits and risks of central bank digital currencies.
The Bank for International Settlements (BIS) will provide technical support to the pilot project of the South Korean Central Bank. Additionally, some private banks and public institutions will participate in the pilot project. The usability of CBDCs will be tested in both retail and wholesale payments.
