The monetary regulator of South Korea, from March to December of next year, will determine the technical and legal grounds for the creation and issue of the digital currency of the central bank (CBDC), as reported by The Block.
The technical aspect focuses on the design and functioning of the CBDC. A separate question to be answered is the applicability of the blockchain as the underlying technology.
The legal aspect is based on the analysis of amendments to the Bank of Korea Act, which will require the launch of the digital won.
The pilot program will be divided into the following stages:
1) Designing of CBDC and definition of requirements: March – July 2020
2) Technology Overview: April – August 2020
3) Analysis and consultation of business processes: September – December 2020
4) Construction and testing of the CBDC pilot system: January – December 2021
The Central Bank of South Korea in December last year announced the formation of a task force to study digital won.
In a recent report, researchers at the Bank for International Settlements (BIS) expressed confidence that the coronavirus pandemic would accelerate the spread of online payments and update issues related to national digital currencies.
Recall that the People’s Bank of China, with the support of the payment company Alipay, completed work on the basic functionality of digital currency and has now focused on preparing laws to regulate its circulation.