South Korea’s central bank selects a technology provider to create a pilot platform for a government cryptocurrency. Testing will be conducted between August and December this year.
The Bank of Korea is looking for a collaborator through an open bidding procedure to investigate the expediencies of launching the Central Bank’s digital currency in a trial environment. Earlier, the Central Bank of South Korea disclosed that it would begin examining its own digital currency in the second half of 2021 but prefers not to rush to launch it.
“The share of cash operations is decreasing significantly,” a Bank of Korea spokesman said at a press conference. “The steps we are undertaking now are arranging for changes in the payment resolution system.”
According to a statement from the South Korean Central Bank, the platform will include emulators of commercial banks and retail outlets, and the tests will involve payment using smartphones, relocating money, and producing deposits. The pilot program will be conducted between August and December and could be extended to the next phase next year.
According to a recent Bison Trails report, about 80% of central banks are studying use cases for government cryptocurrencies, and 40% are already assessing proofs of concept. In March, researchers at the Bank for International Settlements said that compliant government cryptocurrencies would open the opportunity for countries to improve inter border payments.
