{"id":53439,"date":"2023-08-26T21:51:38","date_gmt":"2023-08-27T01:51:38","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/s-korean-central-bank-to-unveil-cbdc-blueprint\/"},"modified":"2023-08-26T21:51:40","modified_gmt":"2023-08-27T01:51:40","slug":"s-korean-central-bank-to-unveil-cbdc-blueprint","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=53439","title":{"rendered":"S Korean Central Bank to Unveil CBDC \u2018Blueprint\u2019"},"content":{"rendered":"
\n

The South Korean central bank, the Bank of Korea (BOK), is set to showcase a \u201cblueprint\u201d for its CBDC in September as the nation looks to speed up the progress of its digital KRW.<\/p>\n

Per Fn News and the Byline Network, the BOK has \u201csuccessfully completed\u201d a CBDC interoperability-focused pilot, whereby it attempted to link its own prototype digital won platform with commercial banking and e-pay apps.<\/p>\n

The BOK has been working on this key step of its CBDC development since May, and is now ready to \u201cannounce plans\u201d for CBDC \u201cinfrastructure construction.\u201d<\/p>\n

The BOK will reportedly make an announcement in this regard in September, and is working closely with private sector partners.<\/p>\n

The body has already begun requesting that the National Assembly pass relevant legislation.<\/p>\n

The bank also appears to have held talks with the nation\u2019s top financial regulators.<\/p>\n

An official from the Financial Services Commission was quoted as stating:<\/p>\n

\n

\u201cThe relevant departments of the Financial Services Commission and the Financial Intelligence Unit are discussing the BOK\u2019s CBDC project.\u201d<\/p>\n<\/blockquote>\n

The official said the regulators needed to \u201creview\u201d the BOK\u2019s plans to ensure \u201cthere are no conflicts [of interest].\u201d<\/p>\n

And the regulator added that the \u201cdiscussion on establishing a legal framework\u201d for the digital KRW would \u201cdepend on what the Bank of Korea\u2019s CBDC model looks like, and what laws and regulations can be applied to it.\u201d<\/p>\n

South Korean Central Bank Forges Ahead with CBDC Plans<\/h2>\n

The bank still needs to convince lawmakers to grant it the legal right to hold \u201cdigital assets.\u201d<\/p>\n

But there has been pushback to the BOK\u2019s plans.<\/p>\n

During the coronavirus pandemic, the government unveiled plans to create \u201ccontact-free\u201d payment channels, with a CBDC touted as a tool that could help achieve this.<\/p>\n

This has led to initiatives including \u201ccashless buses\u201d in Seoul.<\/p>\n

The South Korean capital began piloting cash-free buses in October 2021, removing cash payment options on 171 buses.<\/p>\n

This pilot has since been expanded, with other cities also debuting \u201ccashless buses.\u201d<\/p>\n

But these plans have drawn a \u201cpublic backlash\u201d from certain sectors, media outlets reported earlier this year.<\/p>\n

<\/oembed><\/figure>\n

Lawmakers and politicians have also spoken about their desire to create a \u201ccashless\u201d society, but some critics have claimed that this would place too much power in the hands of the BOK.<\/p>\n

Although the BOK initially claimed that it would not launch a CBDC due to the fact that so many e-pay solutions already exist in South Korea, events of the past few years appear to have caused it to make a U-turn.<\/p>\n

<\/oembed><\/figure>\n

The coronavirus pandemic drove initial discussions, but the rapid pace of China\u2019s digital yuan pilot may have forced Seoul\u2019s hand.<\/p>\n

The Bank of Japan has also been pushing ahead with its own digital yen project.<\/p>\n

Seoul is unaccustomed to losing tech races with Beijing, and \u2013 like Tokyo \u2013 directly funds private-sector IT R&D efforts.<\/p>\n

With some 90+ nations already stating that they have looked into the possibility of launching a CBDC, the BOK wants to ensure it is not left behind \u2013 and is in the position to fast-track a digital won launch.<\/p>\n<\/p><\/div>\n