The Bank of Korea Establishes Dedicated CBDC Team... Expands Expert Workforce

[Asia Economy Reporter Kim Eunbyeol] The Bank of Korea has established a dedicated team for central bank digital currency (CBDC) and is expanding its professional workforce.

On the 5th, the Bank of Korea stated in a reference document titled "Status of CBDC Responses in Major Countries" that "In preparation for the possibility that the need to issue CBDC may arise due to changes in external conditions, we have set up a dedicated team and are expanding professional personnel to address legal issues and conduct technical research."

CBDC refers to central bank money issued in electronic form using distributed ledger technologies such as blockchain. The dedicated team consists of the Digital Currency Research Team and a technical unit.

However, the Bank of Korea added that, in Korea's case, the incentive to issue CBDC is not significant due to the well-established payment infrastructure. Since electronic payment infrastructure is already in place, the demand for CBDC from a payment perspective is not large.

Previously, from September 2017 to January 2018, the Bank of Korea conducted a pilot test of interbank fund transfers based on distributed ledger technology.

From September to December 2018, a pilot test of a small-value payment system was conducted, and currently, a pilot test on simultaneous settlement of securities payments is underway.

According to the Bank of Korea, advanced countries with already efficient payment systems show strong interest in large-value payment CBDCs, while developing countries with needs such as enhancing financial inclusion are more interested in small-value payment CBDCs.

With the reinforcement of CBDC-related organizations and the expansion of professional personnel underway, numerous pilot tests are also planned after 2020.

The Bank of Korea stated, "The introduction of CBDC in major countries can have a significant impact not only on payment systems but also on the overall economy," and added, "It is necessary to carefully consider the pros and cons of CBDC adoption based on each country's circumstances before making a decision."

This content was produced with the assistance of AI translation services.