SEOUL, Oct. 4 (Yonhap) -- South Korea's central bank and financial regulators said Wednesday that they plan to conduct a joint test on the feasibility of a central bank digital currency (CBDC) in financial transactions.
Since August 2021, the Bank of Korea (BOK) has been launching the mock test of a CBDC for inter-financial institution transactions.
The central bank said the BOK, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) will expand the feasibility test to the realm of transfers and settlements among financial institutions based on a token that it said is not a virtual coin by the end of next year.
They will also check the infrastructure for the future financial market to back a transformation into a digital economy, and study the impact of CBDC introduction on the economy and the financial system as a whole.
They will also study the feasibility test of CBDC as a means of settlement among customers, with measures to be ironed out for the protection of their transactions.
More details will be unveiled next month, the central bank said.
The BOK also said it will cooperate with the Bank for International Settlements (BIS) for the feasibility of a CBDC.
Source: Yonhap News Agency