Flag of South Korea The Bank of Korea (BOK) has announced a plan to launch a central bank digital currency (CBDC) experiment to evaluate the feasibility of implementing the digital won. Announcing the planned pilot on March 18, the central bank said the CBDC experiment will use real-world transactions to test the proposed digital currency. Participants will be able to convert their bank deposits to tokens and use them for payments at selected merchants. The BOK is eyeing the participation of 100,000 individuals in the pilot program but made no mention of a proposed expansion to cover a wider demographic. The initiative is scheduled to begin in April and is expected to last until the end of June. Apart from gauging public sentiments for a CBDC, the BOK is keen on exploring new settlement standards for commercial banks. Currently, local banks perform settlements using reserves with the central bank, but this system has several drawbacks. The upcoming experiment will test the viability of a CBDC-based settlement system for banks using distributed ledger technology (DLT). If things go according to plan, the BOK will roll out a CBDC, and commercial banks can issue tokens linked to it for local payments. […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
