The Bank of Korea will begin pilot transactions in 2021 to determine the feasibility of rolling out a digital currency system across Korea.
Bank of Korea is looking for a firm to partner with on the CBDC’s second phase which involves building the infrastructure.
Bank of Korea is seeking to step up its digitalization efforts with the launch of a new department that will focus on blockchain and artificial intelligence.
The panel will decide which laws may need to be amended to guarantee a smooth launch of a South Korean CBDC.
Developments in payment settlements were pushing central banks towards taking a more serious look at digital currencies.
The South Korean central bank has reportedly been working on a pilot for a system that would issue and record bonds on a blockchain.
A report by the Bank of Korea pointed out that introducing a CBDC would lead to a decline in commercial banks’ demand deposits, causing a cash shortfall.