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South Korea’s Central Bank is ready to test it’s digital currency for possible transactions as early as next year. The report was made on Wednesday by South Korean state-run news agency Yonhap. The report also stated the bank of Korea has completed the design and technology phase of the digital currency, and now will proceed into testing it. The test will enable the Central Bank know and understand it’s possible limitations or vulnerabilities.
The CBDC [central bank digital currency] test system can be seen as the process of actually circulating cash,” a Bank of Korea official told Yonhap. The central bank would reportedly use blockchain technology to manage CBDC test transaction details.
The bank would be in charge of issuing and redemption of the digital currency while the private Financial institutions would be in charge of the distribution as reported by Yonhap.
“The CBDC will be issued and circulated in the virtual world and we are going to test a number of transaction scenarios under a variety of circumstances,” an official said.
The bank of Korea stated that the test phase is the final part of the three- step pilot program.
Phase one saw the designing and checking of technology which ended in July. Phase two focused on analyzing related processes and seeking outside consulting.
The Central Bank has also stated that the testing of the Pilot program is not a confirmation that it will definitely launch an actual digital currency and that they are merely testing the waters.
The Journey to creating its own pilot program for their Central Bank Digital Currency started in April and Plans to run until December 2021.
