The pilot is being conducted to evaluate the feasibility of a future monetary system based on wholesale CBDCs
The Bank of Korea (BOK) has announced its plans to launch a pilot program for a central bank digital currency (CBDC) in collaboration with the country’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS). The program will involve 100,000 citizens and is scheduled for 2024.
“Following consultations with relevant organisations and a review of related laws, the pilot project will be conducted first in the fourth quarter of 2024. The possibility of conducting separate pilots will be considered if banks propose new individual projects,” an official from the BOK said.
Technological experiments will also be conducted as part of the pilot. They will evaluate the feasibility and effectiveness of issuing and distributing a CBDC. For instance, the BOK will collaborate with the Korea Exchange to integrate their CBDC into a simulation system for carbon emissions trading.