Express
Sources: Bank of Korea Plans to Restart CBDC Testing
Summary: According to sources cited by Decenter, the Bank of Korea has recently sent a formal document to major banks regarding the second round of CBDC testing. A Bank of Korea official stated that details including specific methods and timing are currently under discussion. The second round of testing is considering distributing some government subsidies in ...
According to sources cited by Decenter, the Bank of Korea has recently sent a formal document to major banks regarding the second round of CBDC testing. A Bank of Korea official stated that details including specific methods and timing are currently under discussion. The second round of testing is considering distributing some government subsidies in the form of digital currency. The aim is to use CBDC to restrict the use of subsidies and reduce the management and administrative costs associated with subsidy distribution. Previously, the Bank of Korea had launched a three-month CBDC pilot project in April, involving seven participating banks, but later suspended the project. At that time, the pilot project was criticized for its limited practical value and the billions of Korean won in costs it imposed on participating banks.
