The Bank of Korea (BOK) announced that the first stage of its Central Bank Digital Currency (CBDC) or Digital Won experiments had been completed.
As the financial revolution sweeps the globe, several central banks are revisiting the usage of fiat currencies in their economies. South Korea is one of the most developed Asian economies considering the establishment of a CBDC, with the country establishing a commission to expedite its CBDC pursuit as early as June 2020.
According to the Yonhap News Agency, the first trial began in August 2021 and ended in December 2021, with the CBDC demonstrating normal operations in a cloud-based environment.
While the first trial stage’s achievement is significant for developing the Digital Won, the apex bank stated that the second stage would include more functionalities to test.
The second phase of the trial is billed to commence right away and is expected to span until June 22 this year.
While no Asian central bank has officially launched a CBDC, the People’s Bank of China (PBoC) can be credited for developing the world’s most sophisticated CBDC. The country’s e-CNY initiative has advanced testing for a very long period. The PBoC has created a digital wallet for the new legal cash available on the Chinese-focused Google Play Store and Apple’s App Store.
The e-introduction CNY’s date is unknown, but the CBDC is being prepared to be used by foreign competitors at this year’s Beijing Olympics.