The Bank of Korea has announced that it is seeking a technology provider for its CBDC project, incorporating the digital won. As a result, plans to implement a groundbreaking payment method in South Korea are moving closer.
The Korean bank’s representatives explained that the partners would assist them in researching the practical aspects of launching a national token in a test set. This entails controlling bank activities such as deposit account creation and money transfers between multiple clients. They also plan to investigate the feasibility of digital currency in the sense of mobile payments.
One of the test platform options for CBDC was proposed by one of Seoul’s banks, Shinhan, in collaboration with LG Corporation, back in March, but the BOK has yet to respond to this proposal. In light of this, it’s reasonable to conclude that the department is still searching for ways for the country’s banking institutions to collaborate.
The CBDC pilot project partnership is relevant in Asia’s fourth-largest economy, according to the bank. Furthermore, according to its members, payment systems, like people’s attitudes toward them, are rapidly changing. The amount of money spent on regular deals has decreased significantly.
As a result, keeping up with the times on the digitalization route is the only way to keep up with countries like the United States and China. By the way, the latter has been studying the digital yuan in various regions for quite some time.
From August to December this year, the BOK plans to launch a test platform for the Korean CBDC.