The Bank of South Korea has announced intentions to set a mock test run for its Central Bank Digital Currency (CBDC).
According to the reports, the main purpose of the CBDC test run is to ascertain the possibility of employing their use in the settlement and remittance for goods and services purchased.
The Bank further made it clear that the intention isn’t yet to release a virtual currency for the country but to decide on viable alternatives.
The mock test is slated to commence in August 2021 and would be concluded in June 2022. The South Korean Central Bank would open an opportunity for bidders who believe that they can pilot the process.
South Korea is well recognized for its technological development and understanding of the growing trends. A sizeable number of South Koreans are actively participating in the cryptocurrency industry.
The South Korean government appears committed to setting up a regulatory framework for the successful use of digital assets in the country. Korean authorities are reported to be working on taxation laws that are inclusive of banning privacy coins.
South Korean Government Toes After China
The government of China and other countries like Sweden are actively working on developing digital versions of their currencies. Other countries like Cambodia and the Bahamas have launched theirs and are pleased with the results.
The Republic of China is enthusiastic about having its CBDC, the digital Yuan, as a good number of Chinese citizens are already using digital wallets and will easily accept the evolution of using their currency in equal virtual systems.
China’s Central Bank is expected to launch its CBDC at the end of the year, judging from the active preparations. Sweden is a newer entrant to the innovation and might take a longer time to successfully implement its e-Krona initiative.
It is certain that other countries are on the lookout for the successful use of CBDCs in major economies like China and would thereafter make their decisions based on the results.