The Bank of Korea will test its digital currency next year. This is what The Korea Herald writes, citing the regulator's own statement.
The decision to proceed with the Central Bank Digital Currency Test (CBDC) was preceded by progress in the research work on the technical part of the project this summer. Now the Bank of Korea is ready to learn about the processes of digital currency issuance and circulation in practice.
South Korea announced its intention to accelerate the development of digital warfare in April as China is rapidly approaching the release of its own CBDC. The Bank of Korea noted that testing digital currency does not imply approval of its launch, but should be the last step in the preparatory process.
The first phase of the digital war project, which was to study and develop the technology, was completed in a few months. It was replaced by the second phase, during which the issue of infrastructure for the new payment means was being worked out. In the third phase, the Bank of Korea will enter into cooperation with local commercial banks to help it test the CBDC circulation.
Previously, the South Korean authorities officially recognized the legal status of cryptocurrency trade in the country.