In a groundbreaking move, the Bank of Korea (BOK) and financial authorities are planning to launch a pilot program for a Central Bank digital currency (CBDC) in South Korea. The program will invite 100,000 Koreans to engage with deposit tokens based on the CBDC. Participants will be limited to using the CBDC for payments only, with no option for storage, exchange, or transfer to other users. The primary objective of the program is to assess the practicality and efficacy of issuing and circulating the CBDC. The BOK views the CBDC as a promising solution to challenges in current government grant systems, such as transaction fees, delayed settlements, and fraud risks. The pilot program will also conduct technological experiments to gauge the feasibility and effectiveness of issuing and distributing these financial products. The BOK plans to collaborate with the Korea Exchange to integrate the CBDC into a simulation system for carbon emissions trading. However, the Bank of Korea Governor has emphasized that South Korea does not intend to issue the CBDC before the United States and European countries. The plan is to test the CBDC with vouchers while postponing its issuance until leading economies make a move. This strategic approach allows South Korea to observe and learn from the experiences of major players in the international CBDC landscape.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Rhee Chang-yong |
| Companies | Korea Exchange, Bank of Korea |
| Currencies | None |
| Securities | None |
