The Central Bank of South Korea (BOK) announced yesterday, October 7, that it plans to begin the distribution phase of its digital won next year as part of its CBDC pilot tests. This development will see the BOK test out distributing digital won within a virtual space. The bank of Korea has also clarified that testing phases will not involve any third parties.
As per the latest reports, the BOK plans to run the Korean CBDC pilot tests up until the end of next year, with the distribution and dissemination phase being the concluding step on their ongoing 22-month CBDC program.
Phase one of the said CBDC program has already concluded this last July. It identified the design and requirements of the Korean CBDC on top of reviewing the needed technology to execute the project. Phase two, on the other hand, is still currently underway. This phase focuses on the analysis of various business and other related processes. As it stands presently, it is set to run up until the end of this year and shall be followed immediately by the third and final phase – the distribution next year.
The Korean CBDC project will purportedly take full use of blockchain technology to track every digital transaction accurately. With all that being said, the BOK still says that such intensive tests and trials do not necessarily mean that it also has immediate plans to launch a CBDC. The bank clarifies that the ongoing project is strictly for assessments only.