The central banks of Italy and South Korea have signed a memorandum of understanding for a central bank digital currency cooperation and to also strengthen their partnership on ICT and payment systems.
The Bank of Korea published a report revealing that its simulations of a digital won had proven Ethereum isn’t scalable enough to anchor a central bank digital currency.
The pilot, which began at the end of July, aims to build a platform for supporting a central bank digital currency in Korea, and is being co-managed by Kakao subsidiary Ground X.
The pilot is to take part over two stages, with the initial basic testing phase set to conclude by December 2021, while the second phase is set to take place over the period to June 2022.
Subsidiaries of Naver and Kakao are reported to have submitted proposals to run the 10-month blockchain pilot program, which will aim to test the feasibility of a central bank digital currency in a simulation.
Bank of Korea has opened an open bidding process as it seeks to team up with a technology supplier as it attempts to explore the feasibility of digital won.
Shinhan Bank is hoping to collaborate with the central bank with the blockchain-powered platform, in order to assist with the development and rollout of a central bank digital currency in South Korea.
The Bank of Korea has said central bank digital currencies are not virtual assets, but an alternative form of fiat currency, requiring some legal changes ahead of any future national rollout.
Bank of Korea is looking for a firm to partner with on the CBDC’s second phase which involves building the infrastructure.
The panel will decide which laws may need to be amended to guarantee a smooth launch of a South Korean CBDC.
