South Korea To Experiment With CBDC In 2024

In the midst of global speculation surrounding central bank digital currencies (CBDC), South Korea is set to experiment with the new technology with 100,000 of its citizens.

Additionally, the pilot is allegedly in conjunction with the Bank of Korea (BOK) and local financial authorities.

Chosen Koreans To Experiment With CBDC

According to a recent report, the pilot project will involve 100,000 local citizens who will be able to purchase goods and services with CBDCs.

“Under the pilot project, 100,000 selected individuals can purchase goods with deposit tokens issued by commercial banks in the form of CBDC, similar to using a voucher at the store.”

Yet, it constitutes only a minor portion of the total country. As per recent data, South Korea boasts a population of around 51.7 million.

Read more: Top 4 Crypto Passive Income Ideas That Really Work In 2023

Not long ago, Augustin Carstens, the Chief of the Bank of International Settlements (BIS), urgently called for nations actively working on central bank digital currencies (CBDCs) to collaborate on defining a common framework of rules.

BIS Chief Advocates Robust Rules for CBDCs

Furthermore, Carstens points out the main reason for CBDCs requiring a set of rules. He declares it is because money is a “social construct.”

However, it is proving to be a discussion amongst most countries worldwide. In 2022, 93% of central banks engaged in some form of CBDC work.

Meanwhile, Hong Kong is actively making strides towards the launch of its own CBDC.

Additionally, global payments company Visa revealed the results of tokenized deposits with CBDCs through a collaborative effort with HSBC and Hang Seng Bank.

The statement noted:

““The HKMA’s pilot program provides Visa with a great opportunity to continue to leverage our strengths, promote payment innovation, and test new forms of money flow in collaboration with partners.”

Read more: Digital Rupee (e-Rupee): A Comprehensive Guide to India’s CBDC