The South Korean central bank is launching a pilot program to test digital won

Although it was found until two months ago that there was no real need for an expense CBDCThe South Korean central bank is now launching a pilot program to test this digitally won

***.

The Bank of Korea (BoK) (Bank of Korea in English) announced that it is launching a pilot program to assess the possible emission of a Central bank digital currency (CBDC). This was reported by the bank itself on its website.

While the Bank of KoreaThe South Korean central bank has no immediate plans to introduce the currency, as it claimed two months ago BoK He said the pilot plan will ensure that they are ready to do so given the changing market conditions.

South Korea plans to test Digital won

According to an investigation carried out in February 2020 BoK He said that the pilot plan is a technological and legal review of the issuance of a CBDC. The plan started in March and is expected to last 22 months until December 2021.

In its initial phase, the plan tries to define the requirements and the design of the CBDCfive months until July 2020.

Then add the BoKThere will be an analysis of the business processes that will continue until the end of 2020. Finally, a phase of construction and testing of the pilot system of the CBDCthat would take 12 months.

Create forecasts

The announcement of the BoK clarified that the bank sees no immediate need for one CBDC in South Korea. On the contrary, it reaffirmed and relied on the research that organizations such as the IMF and other nations have undertaken in this regard. “”you want to be prepared “ should such a measure become necessary:

“The need to issue a CBDC in the near future remains small considering the remaining cash demand, the competitive payment services market and high-level financial inclusion, but quick action is necessary (in order to be able to) to take in case market conditions change quickly. “

The middle Financial magnates said the design of one CBDC from South Korea would not be the classic blockchain with the participation of open nodes. Conversely, add the font that BoK plans to issue one Stablecoin (stable currency).

According to the media, stable currencies have better volatility (“almost” zero) and poorer decentralization. As the example of many tokens shows ERC-20 y USDTIt doesn’t have to attract a large proportion of the participants. Only the key figures need to be involved.

TO Press on the joint

In a different order of ideas that Bank for International Settlements (TO or TO published a report Arguments in favor of central bank digital currencies (CBDC) and digital payments against the coronavirus pandemic (Covid-19).

The report notes a significant negative change in consumer attitudes towards cash. This in response to the warning from the World Health Organization (WHO) about the spread of Covid-19 through the bills. Although the TO reflects the concerns of WHOthe report says The risk of corona viruses being transmitted through contact with credit card terminals and PIN keyboards is even higher.

The TOunlike in the past, predicts that the current climate could operate payment infrastructures from central banks, such as CBDC, quickly become important.

However, and despite the advocacy of one Central bank digital currencythe TO warns that withdrawing cash as a widely accepted form of payment “could open a payment gap“Between those who have access to digital payments and those who don’t.” This in turn probably has “a serious impact on non-bank consumers and older consumers“The BIS was added.

As reported DailyBitcoin in January, the central banks of the United Kingdom, Switzerland, Sweden, Canada and Japan together with European Central Bank (ECB)Formed a working group with the TO examine together CBDC and evaluate its creation.

Sources: BoK, Coin operated speaker, bitcoinist, financial magnate, BIS.

Report by Arnaldo Ochoa / DailyBitcoin.

Youtube picture