Central Bank Digital Currency (CBDC): South Korea Enters the Race

Azeez Mustapha

Updated:

UNLOCK DAILY FOREX SIGNALS

Select a Plan

£40

 1-month subscription

Select

£30

 3-month subscription

Select

£21.5

 6-month subscription

Select

£399

 lifetime subscription

Select

£50

 Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored

Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


South Korea’s central bank has indicated its resolve to implement a central bank digital currency (CBDC) at a slow but sure pace.

According to a report by the Korea Herald yesterday, the Bank of Korea (BOK) is working on a virtual environment to allow for the evaluation, control, and testing of various stages of its proposed digital currency.

That said, the bank will split its research efforts into two parts. The first part would be purely theoretical, which would allow the team involved to study the best features of the CBDC, its compatibility with the existing legal requirements, and possible problems that could arise.

The second part would be purely practical and would involve real-time testing, international transactions, and payment facilitation under several real-life conditions.

While the new development brings Korea closer to getting a sovereign digital currency, the authorities are still wary. With the first phase of work scheduled to begin in August, the central bank does not yet have a release date or plans for a launch.

Nonetheless, research should get rounded off in December. That said, successful implementation of phase 1 should open the door for the start of phase 2 in June 2022.

Central Bank Digital Currency Could Replace Korean Won

A BOK official told the Korea Herald that the country could begin using CBDC if proven to be more efficient than cash.

The official noted that:

“We are launching the pilot test to see how CBDC could be used as a form of a safe asset when the share of cash transactions declines significantly.”

The BOK revealed that the Korean government has approved a budget allocation of 4.9 billion won ($4.4 million) for this project.

This development has pushed Korea into the race for the first developed nation to launch a CBDC. China is currently leading the pack and has already distributed millions of digital yuan for real-time testing in several regions.

 

You can purchase crypto coins here: Buy Coins

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *