As China and various other governments are progressing well with their respective central bank digital currency projects, the central bank of South Korea is also considering taking its centralized digital currency project one step ahead. According to a report by the local media news agency The Korea Herald, the Bank of Korea has said to start the testing of the distribution of its central bank digital currency (CBDC) known as Digital Won in the next year.
According to the report, the South Korean central bank is planning on utilizing blockchain technology for keeping track of its digital won’s transaction details.
The Korea Herald reported that the Bank of Korea rolled out a 22-month pilot trial program back in April this year. This program consists of three phases. In the first phase, the bank completed the process of “designing and checking the technology” and it remained till the month of July. After that, the Korean bank started the second phase of the pilot program which focused on analyzing different processes related to the project. This process is still active and is expected to run until the end of this year.
As soon as the second phase is completed, the bank will roll out the third phase which includes the circulation and distribution testing of digital won. As per the report, this is the final phase of its pilot program which will run through the next year.
The Bank of Korea, however, has said that this progress the bank is making with its digital won project does not mean that the bank will roll out its Central Bank Digital Currency. The bank has not officially confirmed the launch of Digital Won so far. It is still going for the testing phase of the project, the bank said.
China’s central bank is far more ahead from other central banks in showing progress with its digital currency project. After completing the development of its central bank digital currency, the bank is successfully conducting the trials of its Digital Yuan all across the whole country. Soon, it will issue its digital currency.