According to Cointelegraph, the Bank of Korea (BOK) is set to launch a pilot project exploring the technical infrastructure for a central bank digital currency (CBDC). The project, announced jointly by the BOK, the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS), will assess the viability of a future monetary system based on wholesale CBDCs. The pilot will involve private banks and public institutions, with the Bank for International Settlements providing technical expertise. The BOK will test both retail and wholesale types of CBDC, with live testing of the retail CBDC expected to begin in Q4 2024.
While the pilot does not guarantee implementation, FSS First Deputy Governor Lee Myung-soon called it a significant step towards creating a prototype for the future monetary system. This sentiment echoes a statement made by Banque de France First Deputy Governor Denis Beau, who referred to CBDCs as catalysts for improving cross-border payments and enabling the development of a new international monetary system.