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Bank of Korea expands CBDC pilot with live transactions from September
The second phase will involve nine banks using deposit tokens and is meant to lay groundwork for commercialization of a digital won.
The Bank of Korea will move its central bank digital currency pilot into a second phase in September, expanding from testing to live transaction trials with nine participating banks, according to CoinDesk citing Yonhap News Agency.
Under the plan, the Bank of Korea will provide CBDC infrastructure while each bank issues and manages deposit tokens as part of the institutional CBDC effort, with the goal of creating conditions for won trading that works across time and locations.
CoinDesk also notes that South Korea’s CBDC rollout is occurring alongside preparations by banks for won-backed stablecoins and a government effort to classify cryptocurrencies as national assets.
The story further frames the effort as part of a global picture where most countries have not fully launched CBDCs, while the U.S. Senate has passed a bill that included a four-year CBDC ban that is currently on hold pending presidential action.