Bank of Korea Concludes First Round of CBDC Testing

The Bank of Korea (BOK) successfully concluded the first round of a two-phase mock test of its central bank digital currency’s practicality. The BOK announced on Monday that the initial phase of a two-phase practice session of the practicability of a CBDC was done because it considers if to start introducing the prospective future source of financing. The initial phase of the test was debuted in August 2021, and the testing was finalized by the last month of the year.

CBDC Demonstrated Typical Activities in a Cloud-based Setting

The Bank of Korea stated that CBDC demonstrated normal functioning in a cloud-based setting. In phase 2 of the experiment, we’d validate the ability to operate numerous purposes, like offline settlements, as well as the use of technological advances, like the one aimed at strengthening data security,” the Korean central bank stated in a statement. According to the BOK, phase 2 of the experiment would last through 22nd June.

CBDC Study Accelerated by Central Banks Worldwide

CBDCs have begun to be issued by central banks in several Latin American and African nations. China has been pressing for a CBDC to be issued in 2022, perhaps trying to make it the initial large country. In contrast, the Federal Reserve of the United States has allegedly begun an examination of the currency’s possible advantages. 

According to the ILNA, Iran’s monetary authority plans to test its central bank digital currency in the coming years, as previously disclosed. The statement came after a four-year wait since the initiative was first announced.

CBDCs Still Under Investigated by Central Banks

As previously reported, the BoJ announced that it’d begin testing a Major Bank-supported digital currency in 2022. Most nations’ central banks had agreed to participate in CBDCs, and several people are constantly improving them. The PBoC is on the verge of becoming the first large country to issue its digital currency. For the past 5 to 6 years, the PBoC has been developing a digital currency, called DCEP, and is currently near the stage of releasing it to the entire public.