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South Korea is ready to test its CBD with commercial banks, but says the launch is “a long way”

The Bank of Korea (BOK) says it is now ready to begin “real-world” testing of its prototype digital victory – but declined to say if it actually plans to roll it out. declare token or not.

Aju Kyungjae reports that 10 domestic commercial banks have announced their intention to participate in the next phase of the BOK central bank digital currency (CBDC) pilot process. As of late last year, the BOK had been conducting discreet checks with private sector companies including subsidiaries of internet giant Kakao.

But the BOK has stated that in the “second half of the year” it wants “large domestic commercial banks” to participate in the testing process.

The next part of this multi-stage pilot will focus on remittances and payments in a true “financial services environment,” the bank said. As a result, the BOK sent most of the nation’s banks a letter asking for help. The 10 people who have signaled they want to work with the BOK include banking giants Shinhan Bank and Nonghyup (NH) Bank.

BOK also notified banks of its digital KRW progress late last month.

The central bank wants to know if its digital KRW prototype is compatible with different banks’ IT platforms and wants to investigate possible interoperability issues.

The BOK will then follow up this (final) testing phase with a comprehensive report it wants to share with “central banks and international financial institutions” abroad.

However, the report notes that the BOK still thinks it should take a “cautious attitude” towards issuing digital tokens. And even if the digital win proves to be usable, “it is expected to take a considerable amount of time before it is actually introduced,” according to the report.

It added that a “social consensus” on the implementation of the digital currency is needed prior to its launch, while the BOK also wants time to “ensure” “technical stability against calls.” network attack” of the token. Security-related issues, it added, “are also not those that can be resolved in a short time.”

Aju Kyungjae quoted a BOK spokesman as saying:

“Even if we finish our research on CBDC, it will take a long time [for us] to actually launch it.”