South Korea's central bank launches CBDC transaction tests, expecting 100,000 participants. Is a new era of central bank digital currency upon us?
According to local news reports, South Korea's central bank will begin real-world scenario transaction testing of central bank digital currency (CBDC) this month. The test will involve 100,000 consumers and seven banks, including well-known financial institutions such as the National Bank of Korea, Shinhan Bank, and Hana Bank.
The testing is expected to last three months, during which consumers can use CBDC deposit tokens issued by banks to make payments at places like 7-Eleven, Kyobo bookstore, and the delivery app Ddaenggyeoyo.
In the context of this test, participants will have the opportunity to apply for deposit tokens of up to 1 million KRW (approximately 688 USD), and payments can be easily completed by scanning a QR code, making it very convenient!
However, a spokesperson for the Bank of Korea stated that the test may be postponed to April, as discussions with multiple institutions for cooperation are still ongoing.
We all know that South Koreans are renowned for their enthusiasm for cryptocurrencies! However, to prevent cryptocurrencies from overshadowing their efforts, the Bank of Korea has been working hard to advance its own digital currency project.
As early as November 2023 and November 2024, reports have mentioned that the pilot project plans to introduce a digital voucher management platform to facilitate the government in issuing and tracking vouchers, but the specific implementation date has yet to be announced.
Meanwhile, regulatory bodies have noticed that from large enterprises to startups, everyone is enthusiastic about blockchain technology and is making every effort to invest in this blue ocean, trying to seize opportunities in this emerging field.
In summary, this CBDC test is a significant step for South Korea in the field of digital currency. If the test goes smoothly, South Korea's CBDC could set a benchmark for central bank digital currencies worldwide.
However, some people are concerned about whether CBDC will replace existing cryptocurrencies. After all, the Bank of Korea has clearly stated that they want to replace cryptocurrencies with their own controlled digital solutions. Feel free to leave your opinions and thoughts in the comments section!
