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The Bank of Korea and financial authorities, in collaboration with the Bank for International Settlements (BIS), are conducting a central bank digital currency (CBDC) usability test to establish a future currency infrastructure. This initiative marks the 10th anniversary of the Korean virtual asset industry and the passage of the Business Rights Act. The test, involving both public and private sectors, will focus on “institutional CBDCs” for financial transactions. Banks will issue digital payment instruments within the CBDC network, utilizing distributed ledger technology. This project aims to create a new monetary infrastructure jointly managed by the Bank of Korea and financial authorities, with plans to implement it by the end of the following year. Details about participating banks will be disclosed in November, and public participation testing is scheduled for the fourth quarter of the following year. Many countries are actively researching CBDCs, with some already introducing them, such as the Bahamas and Nigeria, while others like China and the European Central Bank are progressing towards adoption. The United States, Japan, and the United Kingdom are also exploring CBDCs and institutional CBDCs as part of their research and development efforts.
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