Bank of Korea will begin the distribution phase of its central bank digital currency by 2021

According to the reported today by local news agency Yonhap, the Bank of Korea (BoK) is to run trials of a central bank digital currency (CBDC) through next year.

“Test-running the pilot program will be similar to the process of bank notes circulating,” a BOK official said.

At the time, the BOK flagged-off a 22-month program focused on the technological and legal provisions needed to launch a CBDC.  

The BOK stated that its CBDC program is not being conducted to prepare for the “actual issuance of its national cryptocurrency, as the demand for banknotes is still on the increase. 

However, the bank said the development would prepare them for future changes in the global financial market. 

Indeed, the central bank has been moving quickly, phase one – designing and reviewing the technology – was completed in several months, and phase two – looking at the likely infrastructure with an outside partner – started at the end of August.

As with China’s digital yuan tests, the BoK will test the blockchain-based CBDC with partner banks to test the circulation process, said The Herald.

Back in June, BoK said the six-person panel, comprised of legal experts in the financial and IT sectors, as well as one specializing in fintech, would provide guidance and advice to the bank as it develops and tests a CBDC.

“We established the advisory group to discuss legal issues surrounding a CBDC and figure out which laws need to be revised or enacted for smooth progress in the BOK’s possible issuance of digital currency,” a BOK official told Korea Times.

As AZCoin News reported on October 5, Japan’s ruling Liberal Democratic Party (LDP) has announced an “interim report” of recommendations to the government by the end of the year. In order to accelerate the introduction of the central bank digital currency.

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