Pexels.com
Main page News, Banking, South Korea, CBDC, Regulations

South Korea's central bank, the Bank of Korea (BoK), plans to start testing the usage of central bank digital currency in 2021, the Korea Herald has learned.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

The BoK reportedly wants to examine practical distribution and circulation of CBDC in the final part of the three-step pilot program. Previously, the regulator analyzed the potential circulation process and discussed design of the asset. The BoK will also use the blockchain technology to track digital currency transactions.

However, the practical test of CBDC's usage does not mean that the bank is ready for public launch of the asset.

South Korea Creates Advisory Team for CBDC

In February 2019, the Central Bank of South Korea said that the launch of CBDC could have "negative consequences on the South Korean financial system."

According to the bank, such kind of national asset might cause a liquidity shortage and pushing up interest rates. The BoK also admits that the launch of CDBC might replace demand deposits service that is held by local commercial banks as people might consider the national digital currency to be far safer.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Strawberry Cake Media Corp. © 2024 Cookie Policy Editorial team Archive

ihodl.com is an illustrated edition about cryptocurrencies and financial markets.
Every day we publish the best materials for everyone interested in economy.