CBDC studies continue in South Korea

The Central Bank of South Korea will test the CBDC pilot in three regions. The selected regions will not include the capital Seoul. It was stated that the trial process will be conducted at the public level.

Work on the central digital currency (CBDC) continues in South Korea. Three potential sites have been identified for the piloting of CBDC in the country. It has been reported that the capital Seoul will not be among these test areas. The bank selected the cities of Jeju, Busan and Incheon for the CBDC. According to the bank’s report, the trial process of payments and distribution will be made at the public level. Payments will be accepted through the CBDC during this process.

In a statement made by an official of the bank, it was stated that CBDC’s electronic wallet application will be attended by tourists as well as citizens. It was stated that the regional tests of the CBDC will be similar to the issuance and distribution of the current local currency scheme in force. The local currency program was introduced as a basic income and aid payment solution during the COVID-19 pandemic. It was noted that local currency practices continue in the three regions selected for CBDC.

Regulations for crypto assets are also underway in South Korea. The transparency of companies that issue or own cryptocurrencies in the country will be required by law. Companies will be required to disclose their financial statements from next year.