The South Korean central bank has revealed that it’ll begin the distribution phase of its CBDC, pilot scheme by next year.
In line with a recent official report by the native reporting media, The Korea Herald, this will see the digital won enter circulation, with financial institutions getting involved within the distribution and transactions being recorded to the blockchain.
As reported earlier, the Bank of Korea’s 22-month CBDC pilot scheme was revealed earlier in March this year. Distribution is the 3rd and final phase of the program and would appear to get on schedule with the roadmap presented at the scheme’s launch.
The 1st Phase was completed earlier in July and defined the requirements & designs of the CBDC alongside a review of the technology required to further implement the project.
The 2nd phase is presently underway and is associated with an analysis of the business & related processes. This is often scheduled to run until the end of this year, resulting in the ultimate build and distribution phase.
Despite solid progress on the pilot program, the Bank of Korea maintains that it has not presently confirmed plans to launch a CBDC once it completes. Rather, it wishes to be fully prepared to require such measures if market conditions, either nationally or globally, were to vary suddenly.
This may be the case once China’s persistently “just-around-the-corner” virtual yuan finally launches, with reports suggesting that South Korean merchants would be able to accept this as a new means of payment method.