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Bank Of Korea Plans To Test Digital Currency Distribution in 2021

The Bank of Korea (BOK) is planning to test the distribution of its central bank digital currency (CBDC) in 2021. Ahead of the test, the BOK will examine the CBDC infrastructure. According to a BeInCrypto report, the bank may need to involve external consultants for the examination.

The report also said the South Korea CBDC work plan showed that the approaching distribution test is the last phase of a three-step procedure. However, the BOK noted that the distribution test does not indicate the launch of a sovereign digital currency.

Back in July, the first phase of the process was concluded. The phase focused on the design and auditing of the base-layer technology.  

Also, in July, the BOK formed a CBDC panel that consists of six people. Notably, the board members are from different industries such as finance, commercial law, fintech, and IT.

Before now, the Korean government pledged $400 million to facilitate blockchain research and development. At that time, reports revealed that the funding was to catch up with China on the race to develop a digital currency.

Already, China has carried out over 3 million transactions using its digital yuan. The Chinese government has also executed progressive pilot tests in different parts of the country, including Shenzhen and Xiongan. In addition, China is planning to test its digital currency during the upcoming Winter Olympics in 2022.

Image Credits: Pixabay

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