South Korea invites 100,000 citizens to try CBDC by 2024

The Bank of Korea (BOK) – South Korea's central bank – has announced that it will invite 100,000 Korean citizens to purchase goods with deposit tokens as part of its Central Bank Digital Currency (CBDC) pilot. The test will begin “around September to October” in 2024 and last for three months.

According to a report from The Korea Times from Nov. 23, participants will be limited to using CBDC for payment only, with no option to store, exchange or send it to other users. The goal of the pilot phase is to assess the feasibility and effectiveness of issuing and distributing the funds.

The BOK will work with the Korea Exchange to integrate the new digital currency's simulation system for carbon emissions trading to test the feasibility of delivery with payment transactions. A BOK statement quoted in the newspaper said.

“[…] The pilot project will take place in the fourth quarter of 2024. The possibility of conducting separate pilots will be considered even if banks offer new private projects.

The BOK's statements coincided with a visit by Bank for International Settlements (BIS) General Manager Agustin Carstens to the country's capital, Seoul. Carstens officially mentioned the Korean CBCC project as a digital win.

Related: IMF chief: CBCCs can replace cash, help financial inclusion

Bank of Korea announced the launch of a CBDC pilot in October. The pilot, a trial of retail and wholesale CBCCs, will involve private banks and public institutions, while BIS will provide expert technical support.

BIS is at the forefront of global CBCC adoption. The Swiss National Bank is helping to develop a wholesale CBDC, as well as building a joint platform with the central monetary authorities of China, Hong Kong, Thailand and the United Arab Emirates. Among many other projects, he is developing a transaction tracking certification with the European Central Bank.

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