Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Editor's Pick

South Korean Central Bank to ‘Speed up’ CBDC Project

The South Korean Central Bank is set to “speed up” its CBDC project, and will pilot its digital KRW with a group of 100,000 citizens later this year.

According to Newsway, the Bank of Korea (BOK) will test digital KRW usability and deposit functions with the group “at the end of 2024.”

South Korean Central Bank Eyes Real-world Tests in Q4

In October last year, the BOK announced plans to launch “CBDC usability tests” with the nation’s top regulators, the Financial Services Commission and the Financial Supervisory Service.

Lawmakers have also created a law that differentiates between CBDCs and cryptoassets like Bitcoin (BTC).

The bank has unveiled plans to “build a pilot CBDC network.” This network will “issue and distribute” three “types” of tokens “based on institutional CBDC models.”

The plans will see the BOK “issue and distribute” “deposit-style” tokens and “e-money tokens.” The bank said the launch would come in “the fourth quarter of the year.”

Real-time Tests to Start in 2024

The bank added that it will perform “real-time transaction tests” with “ordinary citizens. It wants test subjects to pilot using the CBDC “in commercial settings.”

However, many critics claim that a South Korean CBDC launch could damage the country’s burgeoning fintech and banking sectors.

Seo Ji-yong, a Professor of Business Administration at Sangmyung University, said that CBDC “commercialization will take time” in South Korea.

Seo added that “as the CBDC project becomes more concrete,” there was “a possibility that private companies will prepare corresponding projects.”

The headquarters of the Bank of Korea in Seoul, South Korea. (Source: Mostly1)

Indeed, some firms have been doing exactly that. Some of the nation’s biggest tech firms and banks began CBDC operations several years ago. Seo said:

“The digital KRW is still in the pilot stage. So we have to wait and see how [the private sector] responds.”

A BOK official explained that “as existing card transactions incur fees, merchants can reduce fees by using the CBDC.”

Retailers the Winners if CBDCs Debut?

Similar sentiments have been expressed in other nations currently fast-tracking their CBDC projects.

In Russia, financial analysts have claimed that the domestic retail sector would likely be the only notable winner.

The banking sector, the analysts claimed, could be in line to lose $536 million per year if the digital ruble is adopted.

But the BOK official moved to reassure the private sector that it was not aiming to encroach on their business sectors. The spokesperson said:

“Rather than posing a risk to other existing industries, the commercialization of CBDC will provide new innovative services. It can serve as an opportunity for industrial development.”

The post South Korean Central Bank to ‘Speed up’ CBDC Project appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...


    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024