South Korea To Start Distributing Digital Won Next Year

The South Korean central bank has stated that it will start distributing digital won, the central bank digital currency (CBDC) next year. The distribution will be a part of the trial of its blockchain for digital currency.

With the distribution of digital won in a virtual manner, the Bank of Korea (BoK) intends to assess the pros and cons of digital won. Notably, the distribution will not involve any third parties as per a statement made by the BoK.

“The CBDC will be issued and circulated in the virtual world and we are going to test a number of transaction scenarios under a variety of circumstances.”

Back in March, the BoK rolled out its 22-month CBDC trial scheme. Distribution of digital won comes under the third and last stage of the program and is on schedule with the plan presented at the launch of the program.

The stage one was finished in July and established the criteria and structure of the CBDC along with an assessment of the technology required to implement the venture.

The second stage is presently going through and is centered on an analysis of the business and associated procedures. This is planned to be conducted until the end of this year, paving way for the fine tuning and distribution stage. In spite of robust advancement in trial program, the Bank of Korea contends that it has no sure plans to roll out a CBDC after completion.

On the contrary, the central bank intends to be totally ready to take such initiatives if market environment, either domestically or internationally, changes abruptly.
It may happen once China rolls out its digital yuan as South Korean businessmen have shown their willingness to accept such a mode of payment.