The CBDC infrastructure trial will be launched by Bank of Korea.
South Korea has joined the ranks of nations launching pilot programs for central bank digital currency (CBDC). The pilot project, aimed at exploring the technical infrastructure for a CBDC, will involve the participation of private banks, public institutions, and the invaluable technical support of the Bank for International Settlements (BIS). The joint announcement regarding the CBDC pilot program was made on October 4th by the Bank of Korea (BOK), the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS). According to the announcement, the project’s primary objective is to evaluate the feasibility of a future monetary system built upon “wholesale CBDCs.” The pilot program encompasses not only private banks and public institutions but also includes comprehensive testing of both retail and wholesale CBDCs. Within the experimental framework of the wholesale CBDC, participating banks will tokenize their deposits and circulate them within a ne...