South Korea’s central bank said that, with the first part ready, it is currently conducting the second phase of the test without a hitch.
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The Bank of South Korea reported today that it concluded the first phase of a central bank digital currency (CBDC) simulation project in December 2021.
The bank report indicates that the first phase tested the basic functions of a CBDC, including manufacturing, issuance, and distribution in a simulation environment. It concluded that the CBDC “functions normally” under test conditions.
Following these results of the first phase, the report says that the South Korean central bank plans to explore the implementation of other functions, such as offline payments and adding personal information protection-enhancing technologies.
However, in a statement separate from the report, the bank said further experiments are needed to confirm whether CBDC would work as effectively in a real environment.
After the second phase is completed in June 2022, the bank plans to conduct a comprehensive evaluation of the project and continue usability experiments in cooperation with financial institutions, it said. Coindesk.
South Korea and crypto
It is worth noting that the Bank of Korea, BoK, has been working on creating a CBDC pilot project since at least 2020. In July 2021, it chose Ground X, a blockchain subsidiary of South Korean tech giant Kakao, to build the CBDC pilot platform.
But it is not the only thing that South Korea does in relation to crypto. It is worth remembering that in November 2021 decided to postpone until 2023 the cryptocurrency income tax, which should have started this year. At the same time, last year he was emphatic and gave crypto exchanges an ultimatum to register. Earlier, in August 2021, he had warned that no exchange in the country met regulatory requirements.
Sources: Book, Coindesk and file
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