Bank of Korea to enter the technical phase of CBDC testing

The Bank of Korea will identify a potential partner to help create the systemic architecture of the central bank digital currency (CBDC). This followed the design and specification of requirements for the CBDC developer, according to The Korea Times.

The CBDC architecture includes aspects such as applications, data management, and security.

As part of the second stage of testing the CBDC, the partner will also help the regulator develop a roadmap of concrete actions.

By leveraging the architecture, the regulator expects to accelerate the creation of a pilot CBDC system. This will enable practical testing of it by the end of 2021.

The Bank of Korea announced late last year the creation of a task force to study the digital currency. By spring, the regulator had outlined the main stages of CBDC testing.

In June, the central bank launched an advisory-legal group to study the legal aspects of issuing a CBDC. At the same time, the Bank of Korea included the digital currency in the government’s economic development plan through 2030.

As reported, China proposed a plan to create a CBDC based on the currencies of the PRC, Korea, Japan and Hong Kong.

In mainland China, practical testing of the digital yuan began in May. Recently, media reported that one of the country’s largest banks, China Construction Bank (CCB) opened wallet registrations for the CBDC.

The Bank of Japan has formed a working group, announced the start of CBDC testing, and the government has included the digital yen in the economic development plan.

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