The Bank of Korea: "CBDC Issuance and Distribution Functions Operating Normally"

Discussion on Commercialization to Begin Upon Completion of June Experiment

[Asia Economy Reporter Jang Sehee] The pilot test results of the Central Bank Digital Currency (CBDC) showed that basic functions such as issuance and distribution are operating normally. Once the experiment is completed in June, discussions on commercialization will begin.

On the 24th, the Bank of Korea announced that it completed the first phase of the CBDC pilot test research project in December last year and is currently carrying out the second phase smoothly.

Earlier, in August last year, the Bank of Korea started the CBDC pilot test research service with Ground X.

In the first phase, a pilot test environment was created in a virtual cloud space, and it was confirmed that the basic functions of the implemented CBDC, such as manufacturing, issuance, and distribution, operated normally. It was explained that the CBDC basic operations IT system was implemented by building a hybrid CBDC operation method where the central bank manufactures and issues, and participating institutions distribute to users.

In the second phase, based on the first phase, various additional functions such as offline payments and the possibility of applying new technologies like enhanced personal information protection will be verified. Plans include implementing additional CBDC functions such as remittances and offline payments in a state where the internet communication network is disconnected, digital asset transactions, and cross-border remittances.

After the second phase project ends in June, the Bank of Korea plans to expand experiments on CBDC usability and technology verification in cooperation with financial institutions.

The Bank of Korea will hold consultations with financial institutions in the first quarter of this year and establish detailed plans for linked experiments.

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