The Bank of Korea confirms the success of CBDC linkage experiment in a real-world enviornment

The Bank of Korea has confirmed the success of its Central Bank Digital Currency (CBDC) linkage experiment in a real-world environment, which involved conducting a research project with 14 banks and financial payment centers to test the operating environment of digital currency issued by central banks. The Bank of Korea has announced in March that payments and remittances could be executed even without network connectivity. The experiment was conducted by preparing IT systems, linking the CBDC simulation system with participating organizations, and testing its performance and functions, and the BOK confirmed that the system was functioning normally with a performance degradation range of 10% due to communication delays.

CBDC is digital currency issued by central banks of countries. Since the second half of last year, the BOK has been conducting a research project with 14 banks and financial payment centers, including KB, Shinhan, Woori, Hana, Nonghyup, Busan, Daegu, Gyeongnam, Gwangju, Jeonbuk, Suhyup, Enterprise, Kakao, and K-Bank, to check the operating environment. On March 27, the BOK revealed in its ‘2022 Payment and Settlement Report’ that payments can be made in an offline environment and that remittances and payments can be made even when there is no connection to the communication network.

The experiment was conducted in the order of preparing IT systems for each participating organization, linking IT systems between the CBDC simulation system and participating organizations, and performance and functional experiments, and the CBDC simulation system that was constructed operated normally in an operating environment close to the real world, and the system performance degradation due to communication delays is within the acceptable range of 10%, the BOK said.

Read more: The Seoul court ruled that Luna, a cryptocurrency developed by Terraform Labs, is not a security