However, the bank said the development would prepare them for future changes in the global financial market. With China accelerating its digital yuan pilot, other APAC nations and countries outside Asia have begun to delve into CBDC-related studies.
This undated photo shows the headquarters of the Bank of Korea in central Seoul.
In addition to the immediate need for a CBDC, BOK chose to review the technical and legal requirements for issuing and operating a CBDC system in order to preempt negative blowback from operators of existing payment environments in South Korea. Bank of Canada examines the security risks for a hypothetical token-based CBDC.
With phase one of its central bank digital currency (CBDC) experiment complete, the Bank of Korea (BOK) is looking forward to testing the token distribution system in 2021. Token holders can make an vast number of wallets in the digital asset world, achieved through spreading their funds in various portions across those wallets.
The Bank of Korea (BOK) said Wednesday it plans to test-run issuing and circulating a central bank-issued digital currency (CBDC) next year, as the bank will launch a pilot program to study the potential introduction of a new cryptocurrency. It prompts more asset storage locations than would be plausible in traditional finance.
Accordingly, possible explanations include caps on wallet holdings incorporated with the CBDC and parameters for the associated central bank's involved media.