South Korea Plans to Test CBDC Project in 2024

According to a recent report from Atlantic Council around 130 nations around the world are currently working on CBDC projects. South Korea is among the nations where the Central Bank is also conducting CBDC testing. On this front, the nation has extended an invitation to one lakh citizens to take part in a CBDC roll out.

The participants are restricted to using issued CBDCs for payments purposes only and do not cater to exchanging or peer-to-peer swaps. Bank of Korea, the central banking enterprise has told media that it will send an invitation to buy goods using deposit tokens distributed via the CBDC pilot project.

The testing will take place between September and October in 2024 and remain active for three months. Local media outlet, Korea Times published a cover article on 23rd November informing that the participants in the CBDC test are allowed to use their tokens for payments and will not be able to store, swaps, or exchange with other holders.

The main purpose of launching the pilot is to ensure the feasibility and practical utility of distributing the digitized version of the local legal tender.

Bank of Korea is Working with the Korean Stock Exchange to Conduct the CBDC Pilot

In addition to inviting the locals for participation in the CBDC pilot, BoK is also working with Korean Stock Exchange to run a test version of the new CBDC to carry out comparative analysis between delivery options and payments. On this account, BoK also published an article claiming that pilot project will start the first phase in Q1 2024.

AI Trading Robot

At the same time, the network will conduct separate pilot if banks propose individual projects. The statement was issued during a time when BIS General Manager, Agustin Carstens paid a visit to capital city.

The GM referred to the CBDC token as digital won. BoK announced the launch of CBDC pilot in October. The pilot project will conduct tests for retail and wholesale CBDCs and add private banks and public firms.

At the same time, BIS will facilitate expert technical support. At present, BIS is at the forefront of CBDC adoption across the globe. Therefore, the International Banking Alliance is also working alongside Swiss National Bank to create a wholesale CBDC.

Swiss National Bank is working with BIS to introduce a new wholesale CBDC token. At the same time, BIS is also collaborating with monetary authorities of Hong Kong, China, Thailand, and United Arab Emirates to create a joint platform.

Crypto Transactions Tracking

Bank of International Settlement (BIS) is working with a group of European central banks to track cryptocurrency transactions on an international scale. To carry out the tracking, BIS officials have setup a Proof-of-Concept platform for tracking on-chain and off-chain transactions generated from regulated exchanges and permissioned blockchains like Bitcoin.

Deutsche Bundesbank, European Central Bank, Banque de France, and De Nederlandsche are some of the central banks participating in the pact named as Project Atlas.

This initiative will measure the macroeconomic impact of blockchain sector and DeFi markets. The Innovation Hub of BIS is publishing details regarding the development and undertakings of this Project Atlas.

These publications reflects on economic effects, lack of transparency, risks associated with financial stability generated from high-profile blockchain objects such as Terra and FTX.  The project intends to expand to data extraction from Ethereum network and DeFi applications next.

Previous post Genesis Files Lawsuit Against Gemini to Claim Preferential Transfers
Next post Crypto Exchange Executives Forecast a Bull Market Next Year