Bank of Korea prepares for live CBDC transactions with 9 banks in September
The Bank of Korea is set to begin live transaction testing for its institutional Central Bank Digital Currency (CBDC) in September with nine participating commercial banks. This phase aims to establish the infrastructure for commercialization and allow for the free trading of the won in digital form.
Why it matters
As one of the few nations moving toward live CBDC testing, South Korea's progress serves as a critical case study for the future of digital fiat currency and banking infrastructure.
The second phase of BOK's CBDC program is scheduled for September with real-transaction testing, Yonhap News Agency reported on Monday .
"The Bank of Korea will provide the infrastructure for the institutional CBDC, and each bank will conduct its own business using deposit tokens," a BOK official told YNA. "From the second phase, we will lay the groundwork for commercialization."
The BOK’s second phase will expand to include a total of nine participating banks, including Gyeongnam Bank and iM Bank. The country’s top three banks, KB Kookmin, Shinhan, Hana, and Woori Financial Group, are also participating in the CBDC project.
"The goal is to create an environment where the won can be traded freely regardless of time or place," Yonhap quoted the government as saying.
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