Pilot Program By BOK, For Testing Digital Currency

On April 06, 2020, the BOK stated mentioned that it already, introduced the program in March 2020 and now it would run till December 2021. With the help of this test, the bank would find out, whether it would need any further technical and legal provision to develop and issue digital currency.

CBDC Is Affected With Rapid Innovations In Payment Service Sector 

While talking about the pilot program, the BOK stated,

“A need to issue a CBDC in the near future still remains slim when considering the demand for cash that still exists, the competitive payment service market and high-level financial inclusion, but there is a need to be able to quickly take steps in case, the market conditions at home and abroad change rapidly.” 

It further said that technologically the payment service sector is innovating rapidly and the BOK wants to start a pilot program for CBDC system so that it could take precautionary measures against the changes happening in the environment.

Schedule For Pilot Program 

A report suggested that in the first five months of the pilot program i.e., from March 2020 to July 2020, the bank would finalize the CBDC design and also look after its requirements. Then from April 2020 to August 2020, it would review the program technologically. For the next four months i.e., from September 2020 to December 2020, the bank would analyse the business process. And lastly, for a year, from January 2021 to December 2021, CBDC pilot system would be developed for further testing.

According to BOK, presently the demand for cash is high in the country, as it (cash) is being used among other factors and therefore, the bank does not feel that issuing CBDC would important. But the bank also mentioned that in the future the situation might change, therefore, the bank is preparing itself for every future consequence.

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