The central bank for South Korea will start a close cooperation with private Korean banks to test the challenges of issuing and distributing a national digital currency (commonly referred to as CBDC). This has been reported by the local Korean Herald newspaper.
As reported by the media, the issue verification represents the final third stage of the bank`s pilot project. The initial stage of design and tech validation concluded in July this year. The second one, which has the goal to analyse related processes and find external consultants started shortly after that.
China is currently the leader of digital currency testing among the major world economies. South Korea follows closely in its footsteps, initiating the third and final stage of its testing, although the Bank of Korea announced its plans to issue a virtual version of its currency just recently – in April 2020.
The initial plan of the bank was the entire pilot project to last up to 22 months and it looks like everything is going according to the schedule. The work on the third and final stage of the test is expected to take place throughout 2021. In this framework, the Bank of Korea will distribute its virtual currency and analyze its market circulation and functionality.
