The Bank of Korea (BOK), the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) announced on Wednesday that they will be conducting a joint experiment to assess the viability of a central bank digital currency (CBDC) for financial transactions.
Since August 2021, the BOK has been testing a CBDC for inter-financial institution transfers and settlements. The three agencies are now planning to expand the feasibility study to include a token that is not a virtual coin by the end of next year.
In addition, they will assess the infrastructure for a digital economy, research the impact of CBDC introduction on the economy and the financial system, and evaluate the safety of customer transactions.
More information will be released in November. The BOK also stated that it will be collaborating with the Bank for International Settlements (BIS) for the feasibility of a CBDC.